Correlation Between CNOOC and Shanghai Action
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By analyzing existing cross correlation between CNOOC Limited and Shanghai Action Education, you can compare the effects of market volatilities on CNOOC and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Shanghai Action.
Diversification Opportunities for CNOOC and Shanghai Action
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNOOC and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of CNOOC i.e., CNOOC and Shanghai Action go up and down completely randomly.
Pair Corralation between CNOOC and Shanghai Action
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.73 times more return on investment than Shanghai Action. However, CNOOC Limited is 1.38 times less risky than Shanghai Action. It trades about 0.08 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.04 per unit of risk. If you would invest 1,395 in CNOOC Limited on September 16, 2024 and sell it today you would earn a total of 1,308 from holding CNOOC Limited or generate 93.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Shanghai Action Education
Performance |
| Timeline |
| CNOOC Limited |
| Shanghai Action Education |
CNOOC and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Shanghai Action
The main advantage of trading using opposite CNOOC and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. BYD Co Ltd | CNOOC vs. Shaanxi Beiyuan Chemical | CNOOC vs. Zoy Home Furnishing |
| Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. China Mobile Limited | Shanghai Action vs. CNOOC Limited | Shanghai Action 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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