Correlation Between Great Sun and CNOOC
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By analyzing existing cross correlation between Great Sun Foods Co and CNOOC Limited, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and CNOOC.
Diversification Opportunities for Great Sun and CNOOC
Good diversification
The 3 months correlation between Great and CNOOC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Great Sun 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 Great Sun Foods Co 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 Great Sun i.e., Great Sun and CNOOC go up and down completely randomly.
Pair Corralation between Great Sun and CNOOC
Assuming the 90 days trading horizon Great Sun is expected to generate 4.1 times less return on investment than CNOOC. In addition to that, Great Sun is 1.6 times more volatile than CNOOC Limited. It trades about 0.01 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.07 per unit of volatility. If you would invest 1,925 in CNOOC Limited on September 3, 2024 and sell it today you would earn a total of 703.00 from holding CNOOC Limited or generate 36.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. CNOOC Limited
Performance |
| Timeline |
| Great Sun Foods |
| CNOOC Limited |
Great Sun and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and CNOOC
The main advantage of trading using opposite Great Sun and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Beijing Wantai Biological | Great Sun vs. Aluminum Corp of | Great Sun vs. COL Digital Publishing | Great Sun vs. Shaanxi Meineng Clean |
| CNOOC vs. HeBei Jinniu Chemical | CNOOC vs. Sinofibers Technology Co | CNOOC vs. Shaanxi Beiyuan Chemical | CNOOC vs. Guangzhou KingTeller Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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