Correlation Between CNOOC and Kunshan Guoli
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By analyzing existing cross correlation between CNOOC Limited and Kunshan Guoli Electronic, you can compare the effects of market volatilities on CNOOC and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Kunshan Guoli.
Diversification Opportunities for CNOOC and Kunshan Guoli
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNOOC and Kunshan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of CNOOC i.e., CNOOC and Kunshan Guoli go up and down completely randomly.
Pair Corralation between CNOOC and Kunshan Guoli
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.38 times more return on investment than Kunshan Guoli. However, CNOOC Limited is 2.6 times less risky than Kunshan Guoli. It trades about 0.17 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.09 per unit of risk. If you would invest 2,610 in CNOOC Limited on September 13, 2024 and sell it today you would earn a total of 113.00 from holding CNOOC Limited or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| CNOOC Limited |
| Kunshan Guoli Electronic |
CNOOC and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Kunshan Guoli
The main advantage of trading using opposite CNOOC and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| CNOOC vs. Hang Xiao Steel | CNOOC vs. Dongjiang Environmental Co | CNOOC vs. China World Trade | CNOOC vs. Shandong Iron and |
| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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