Correlation Between Dawning Information and CNOOC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dawning Information Industry and CNOOC Limited, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and CNOOC.
Diversification Opportunities for Dawning Information and CNOOC
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dawning and CNOOC is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and CNOOC go up and down completely randomly.
Pair Corralation between Dawning Information and CNOOC
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.72 times more return on investment than CNOOC. However, Dawning Information is 1.72 times more volatile than CNOOC Limited. It trades about 0.1 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.16 per unit of risk. If you would invest 6,451 in Dawning Information Industry on November 6, 2024 and sell it today you would earn a total of 248.00 from holding Dawning Information Industry or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. CNOOC Limited
Performance |
| Timeline |
| Dawning Information |
| CNOOC Limited |
Dawning Information and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and CNOOC
The main advantage of trading using opposite Dawning Information and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Beijing Bewinner Communications | Dawning Information vs. Ping An Insurance | Dawning Information vs. China Life Insurance | Dawning Information vs. ZYF Lopsking Aluminum |
| CNOOC vs. Shandong Homey Aquatic | CNOOC vs. DO Home Collection | CNOOC vs. JCHX Mining Management | CNOOC vs. Ziel Home Furnishing |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |