Correlation Between CNOOC and RoadMain T
Specify exactly 2 symbols:
By analyzing existing cross correlation between CNOOC Limited and RoadMain T Co, you can compare the effects of market volatilities on CNOOC and RoadMain T and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CNOOC with a short position of RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and RoadMain T.
Diversification Opportunities for CNOOC and RoadMain T
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CNOOC and RoadMain is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T and CNOOC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CNOOC Limited are associated (or correlated) with RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of CNOOC i.e., CNOOC and RoadMain T go up and down completely randomly.
Pair Corralation between CNOOC and RoadMain T
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.57 times more return on investment than RoadMain T. However, CNOOC Limited is 1.76 times less risky than RoadMain T. It trades about 0.08 of its potential returns per unit of risk. RoadMain T Co is currently generating about 0.02 per unit of risk. If you would invest 1,450 in CNOOC Limited on October 12, 2024 and sell it today you would earn a total of 1,375 from holding CNOOC Limited or generate 94.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. RoadMain T Co
Performance |
| Timeline |
| CNOOC Limited |
| RoadMain T |
CNOOC and RoadMain T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and RoadMain T
The main advantage of trading using opposite CNOOC and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, RoadMain T can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RoadMain T will offset losses from the drop in RoadMain T's long position.| CNOOC vs. China World Trade | CNOOC vs. Great Sun Foods Co | CNOOC vs. Masterwork Machinery | CNOOC vs. Long Yuan Construction |
| RoadMain T vs. PetroChina Co Ltd | RoadMain T vs. China Mobile Limited | RoadMain T vs. CNOOC Limited | RoadMain T vs. Ping An Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |