Correlation Between SWISS WATER and CNOOC
Can any of the company-specific risk be diversified away by investing in both SWISS WATER and CNOOC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SWISS WATER and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and CNOOC, you can compare the effects of market volatilities on SWISS WATER 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 SWISS WATER with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and CNOOC.
Diversification Opportunities for SWISS WATER and CNOOC
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SWISS and CNOOC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and SWISS WATER 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 SWISS WATER DECAFFCOFFEE 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 has no effect on the direction of SWISS WATER i.e., SWISS WATER and CNOOC go up and down completely randomly.
Pair Corralation between SWISS WATER and CNOOC
If you would invest 218.00 in CNOOC on October 9, 2024 and sell it today you would earn a total of 0.00 from holding CNOOC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SWISS WATER DECAFFCOFFEE vs. CNOOC
Performance |
| Timeline |
| SWISS WATER DECAFFCOFFEE |
| CNOOC |
SWISS WATER and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWISS WATER and CNOOC
The main advantage of trading using opposite SWISS WATER and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER 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.| SWISS WATER vs. alstria office REIT AG | SWISS WATER vs. INVITATION HOMES DL | SWISS WATER vs. Mitsui Chemicals | SWISS WATER vs. 24SEVENOFFICE GROUP AB |
| CNOOC vs. Salesforce | CNOOC vs. Tradegate AG Wertpapierhandelsbank | CNOOC vs. SIDETRADE EO 1 | CNOOC vs. Infrastrutture Wireless Italiane |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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