Correlation Between Pioneer Natural and CNOOC
Can any of the company-specific risk be diversified away by investing in both Pioneer Natural 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 Pioneer Natural and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Natural Resources and CNOOC, you can compare the effects of market volatilities on Pioneer Natural 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 Pioneer Natural with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Natural and CNOOC.
Diversification Opportunities for Pioneer Natural and CNOOC
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pioneer and CNOOC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Natural Resources and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and Pioneer Natural 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 Pioneer Natural Resources 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 Pioneer Natural i.e., Pioneer Natural and CNOOC go up and down completely randomly.
Pair Corralation between Pioneer Natural and CNOOC
If you would invest 218.00 in CNOOC on October 25, 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 | 88.24% |
| Values | Daily Returns |
Pioneer Natural Resources vs. CNOOC
Performance |
| Timeline |
| Pioneer Natural Resources |
| CNOOC |
Pioneer Natural and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Natural and CNOOC
The main advantage of trading using opposite Pioneer Natural and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Natural 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.| Pioneer Natural vs. Keck Seng Investments | Pioneer Natural vs. Apollo Investment Corp | Pioneer Natural vs. JLF INVESTMENT | Pioneer Natural vs. REINET INVESTMENTS SCA |
| CNOOC vs. DXC Technology Co | CNOOC vs. Alliance Data Systems | CNOOC vs. TERADATA | CNOOC vs. Sunny Optical Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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