Correlation Between CNOOC and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both CNOOC and SERI INDUSTRIAL 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 SERI INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNOOC and SERI INDUSTRIAL EO, you can compare the effects of market volatilities on CNOOC and SERI INDUSTRIAL 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 SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and SERI INDUSTRIAL.
Diversification Opportunities for CNOOC and SERI INDUSTRIAL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CNOOC and SERI is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO 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 SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of CNOOC i.e., CNOOC and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between CNOOC and SERI INDUSTRIAL
If you would invest 283.00 in SERI INDUSTRIAL EO on September 4, 2024 and sell it today you would earn a total of 3.00 from holding SERI INDUSTRIAL EO or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CNOOC vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| CNOOC |
| SERI INDUSTRIAL EO |
CNOOC and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and SERI INDUSTRIAL
The main advantage of trading using opposite CNOOC and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| CNOOC vs. Alibaba Group Holding | CNOOC vs. Occidental Petroleum | CNOOC vs. WOODSIDE ENE SPADR | CNOOC vs. Woodside Energy Group |
| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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