Correlation Between CNOOC and EOG Resources
Can any of the company-specific risk be diversified away by investing in both CNOOC and EOG Resources 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 CNOOC and EOG Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNOOC and EOG Resources, you can compare the effects of market volatilities on CNOOC and EOG Resources 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 CNOOC with a short position of EOG Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and EOG Resources.
Diversification Opportunities for CNOOC and EOG Resources
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNOOC and EOG is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC and EOG Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOG Resources and CNOOC 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 CNOOC are associated (or correlated) with EOG Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOG Resources has no effect on the direction of CNOOC i.e., CNOOC and EOG Resources go up and down completely randomly.
Pair Corralation between CNOOC and EOG Resources
If you would invest 218.00 in CNOOC on September 26, 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 |
CNOOC vs. EOG Resources
Performance |
| Timeline |
| CNOOC |
| EOG Resources |
CNOOC and EOG Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and EOG Resources
The main advantage of trading using opposite CNOOC and EOG Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, EOG Resources 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 EOG Resources will offset losses from the drop in EOG Resources' long position.| CNOOC vs. Alibaba Group Holding | CNOOC vs. ConocoPhillips | CNOOC vs. EOG Resources | CNOOC vs. Canadian Natural Resources |
| EOG Resources vs. Alibaba Group Holding | EOG Resources vs. ConocoPhillips | EOG Resources vs. CNOOC | EOG Resources vs. Canadian Natural Resources |
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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