Correlation Between CNOOC and Sinocelltech
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By analyzing existing cross correlation between CNOOC Limited and Sinocelltech Group, you can compare the effects of market volatilities on CNOOC and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Sinocelltech.
Diversification Opportunities for CNOOC and Sinocelltech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNOOC and Sinocelltech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of CNOOC i.e., CNOOC and Sinocelltech go up and down completely randomly.
Pair Corralation between CNOOC and Sinocelltech
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.71 times more return on investment than Sinocelltech. However, CNOOC Limited is 1.4 times less risky than Sinocelltech. It trades about 0.01 of its potential returns per unit of risk. Sinocelltech Group is currently generating about 0.0 per unit of risk. If you would invest 2,596 in CNOOC Limited on September 1, 2024 and sell it today you would earn a total of 22.00 from holding CNOOC Limited or generate 0.85% 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. Sinocelltech Group
Performance |
| Timeline |
| CNOOC Limited |
| Sinocelltech Group |
CNOOC and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Sinocelltech
The main advantage of trading using opposite CNOOC and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| CNOOC vs. Shandong Hi Speed RoadBridge | CNOOC vs. Fujian Longzhou Transportation | CNOOC vs. RoadMain T Co | CNOOC vs. Anhui Gujing Distillery |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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