Correlation Between WOODSIDE ENE and CNOOC
Can any of the company-specific risk be diversified away by investing in both WOODSIDE ENE 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 WOODSIDE ENE and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WOODSIDE ENE SPADR and CNOOC, you can compare the effects of market volatilities on WOODSIDE ENE 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 WOODSIDE ENE with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOODSIDE ENE and CNOOC.
Diversification Opportunities for WOODSIDE ENE and CNOOC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WOODSIDE and CNOOC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WOODSIDE ENE SPADR and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and WOODSIDE ENE 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 WOODSIDE ENE SPADR 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 WOODSIDE ENE i.e., WOODSIDE ENE and CNOOC go up and down completely randomly.
Pair Corralation between WOODSIDE ENE and CNOOC
If you would invest 218.00 in CNOOC on January 13, 2025 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 | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
WOODSIDE ENE SPADR vs. CNOOC
Performance |
| Timeline |
| WOODSIDE ENE SPADR |
| CNOOC |
WOODSIDE ENE and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WOODSIDE ENE and CNOOC
The main advantage of trading using opposite WOODSIDE ENE and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOODSIDE ENE 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.| WOODSIDE ENE vs. Alibaba Group Holding | WOODSIDE ENE vs. ConocoPhillips | WOODSIDE ENE vs. CNOOC | WOODSIDE ENE vs. Canadian Natural Resources |
| CNOOC vs. Alibaba Group Holding | CNOOC vs. ConocoPhillips | CNOOC vs. Canadian Natural Resources | CNOOC vs. Occidental Petroleum |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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