Correlation Between Agricultural Bank and CNOOC
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By analyzing existing cross correlation between Agricultural Bank of and CNOOC Limited, you can compare the effects of market volatilities on Agricultural Bank and CNOOC 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 Agricultural Bank with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and CNOOC.
Diversification Opportunities for Agricultural Bank and CNOOC
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and CNOOC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Agricultural Bank 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 Agricultural Bank of are associated (or correlated) with CNOOC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNOOC Limited has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and CNOOC go up and down completely randomly.
Pair Corralation between Agricultural Bank and CNOOC
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.72 times more return on investment than CNOOC. However, Agricultural Bank of is 1.39 times less risky than CNOOC. It trades about -0.08 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.22 per unit of risk. If you would invest 485.00 in Agricultural Bank of on August 24, 2024 and sell it today you would lose (8.00) from holding Agricultural Bank of or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agricultural Bank of vs. CNOOC Limited
Performance |
| Timeline |
| Agricultural Bank |
| CNOOC Limited |
Agricultural Bank and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and CNOOC
The main advantage of trading using opposite Agricultural Bank and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, CNOOC 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 CNOOC will offset losses from the drop in CNOOC's long position.| Agricultural Bank vs. New China Life | Agricultural Bank vs. Ming Yang Smart | Agricultural Bank vs. 159005 | Agricultural Bank vs. Loctek Ergonomic Technology |
| CNOOC vs. Haima Automobile Group | CNOOC vs. Keda Clean Energy | CNOOC vs. Chongqing Changan Automobile | CNOOC vs. Guangzhou Haige Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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