Correlation Between SBI Insurance and CNOOC
Can any of the company-specific risk be diversified away by investing in both SBI Insurance 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 SBI Insurance and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and CNOOC, you can compare the effects of market volatilities on SBI Insurance 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 SBI Insurance with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and CNOOC.
Diversification Opportunities for SBI Insurance and CNOOC
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBI and CNOOC is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and SBI Insurance 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 SBI Insurance Group 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 SBI Insurance i.e., SBI Insurance and CNOOC go up and down completely randomly.
Pair Corralation between SBI Insurance and CNOOC
If you would invest 605.00 in SBI Insurance Group on October 24, 2024 and sell it today you would earn a total of 50.00 from holding SBI Insurance Group or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. CNOOC
Performance |
| Timeline |
| SBI Insurance Group |
| CNOOC |
SBI Insurance and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and CNOOC
The main advantage of trading using opposite SBI Insurance and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance 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.| SBI Insurance vs. SOUTHWEST AIRLINES | SBI Insurance vs. JAPAN AIRLINES | SBI Insurance vs. Nok Airlines PCL | SBI Insurance vs. AGNC INVESTMENT |
| CNOOC vs. VIENNA INSURANCE GR | CNOOC vs. CarsalesCom | CNOOC vs. QBE Insurance Group | CNOOC vs. SBI Insurance Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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