Correlation Between SERI INDUSTRIAL and CNOOC
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL 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 SERI INDUSTRIAL and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and CNOOC, you can compare the effects of market volatilities on SERI INDUSTRIAL 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 SERI INDUSTRIAL with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and CNOOC.
Diversification Opportunities for SERI INDUSTRIAL and CNOOC
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SERI and CNOOC is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 SERI INDUSTRIAL i.e., SERI INDUSTRIAL and CNOOC go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and CNOOC
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 |
SERI INDUSTRIAL EO vs. CNOOC
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| CNOOC |
SERI INDUSTRIAL and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and CNOOC
The main advantage of trading using opposite SERI INDUSTRIAL and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL 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.| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
| CNOOC vs. Alibaba Group Holding | CNOOC vs. Occidental Petroleum | CNOOC vs. WOODSIDE ENE SPADR | CNOOC vs. Woodside Energy 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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