Correlation Between CNOOC and Shanghai Newtouch
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By analyzing existing cross correlation between CNOOC Limited and Shanghai Newtouch Software, you can compare the effects of market volatilities on CNOOC and Shanghai Newtouch 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 Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Shanghai Newtouch.
Diversification Opportunities for CNOOC and Shanghai Newtouch
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNOOC and Shanghai is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of CNOOC i.e., CNOOC and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between CNOOC and Shanghai Newtouch
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.44 times more return on investment than Shanghai Newtouch. However, CNOOC Limited is 2.25 times less risky than Shanghai Newtouch. It trades about -0.07 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about -0.32 per unit of risk. If you would invest 2,845 in CNOOC Limited on October 24, 2024 and sell it today you would lose (71.00) from holding CNOOC Limited or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Shanghai Newtouch Software
Performance |
| Timeline |
| CNOOC Limited |
| Shanghai Newtouch |
CNOOC and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Shanghai Newtouch
The main advantage of trading using opposite CNOOC and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Shanghai Newtouch 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 Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| CNOOC vs. Montage Technology Co | CNOOC vs. Guosheng Financial Holding | CNOOC vs. Soyea Technology Co | CNOOC vs. Keda Clean Energy |
| Shanghai Newtouch vs. PetroChina Co Ltd | Shanghai Newtouch vs. China Mobile Limited | Shanghai Newtouch vs. CNOOC Limited | Shanghai Newtouch 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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