Correlation Between Guangzhou Fangbang and CNOOC
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By analyzing existing cross correlation between Guangzhou Fangbang Electronics and CNOOC Limited, you can compare the effects of market volatilities on Guangzhou Fangbang 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 Guangzhou Fangbang with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Fangbang and CNOOC.
Diversification Opportunities for Guangzhou Fangbang and CNOOC
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and CNOOC is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Fangbang Electronics and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Guangzhou Fangbang 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 Guangzhou Fangbang Electronics 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 Guangzhou Fangbang i.e., Guangzhou Fangbang and CNOOC go up and down completely randomly.
Pair Corralation between Guangzhou Fangbang and CNOOC
Assuming the 90 days trading horizon Guangzhou Fangbang is expected to generate 3.82 times less return on investment than CNOOC. In addition to that, Guangzhou Fangbang is 1.62 times more volatile than CNOOC Limited. It trades about 0.05 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.33 per unit of volatility. If you would invest 2,619 in CNOOC Limited on September 28, 2024 and sell it today you would earn a total of 269.00 from holding CNOOC Limited or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Fangbang Electronics vs. CNOOC Limited
Performance |
| Timeline |
| Guangzhou Fangbang |
| CNOOC Limited |
Guangzhou Fangbang and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Fangbang and CNOOC
The main advantage of trading using opposite Guangzhou Fangbang and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Fangbang 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.| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang vs. Bank of China |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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