Correlation Between Shenzhen Transsion and CNOOC
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and CNOOC Limited, you can compare the effects of market volatilities on Shenzhen Transsion 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 Shenzhen Transsion with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and CNOOC.
Diversification Opportunities for Shenzhen Transsion and CNOOC
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and CNOOC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Shenzhen Transsion 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 Shenzhen Transsion Holdings 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 Shenzhen Transsion i.e., Shenzhen Transsion and CNOOC go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and CNOOC
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to under-perform the CNOOC. In addition to that, Shenzhen Transsion is 2.94 times more volatile than CNOOC Limited. It trades about -0.03 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.03 per unit of volatility. If you would invest 2,673 in CNOOC Limited on September 5, 2024 and sell it today you would earn a total of 17.00 from holding CNOOC Limited or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. CNOOC Limited
Performance |
| Timeline |
| Shenzhen Transsion |
| CNOOC Limited |
Shenzhen Transsion and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and CNOOC
The main advantage of trading using opposite Shenzhen Transsion and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion 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.| Shenzhen Transsion vs. Eastroc Beverage Group | Shenzhen Transsion vs. Xiamen Jihong Package | Shenzhen Transsion vs. Sinofibers Technology Co | Shenzhen Transsion vs. Northking Information Technology |
| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. Shenzhen Transsion Holdings | CNOOC vs. Fushun Special Steel | CNOOC vs. CITIC Securities Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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