Correlation Between Woodside Energy and CNOOC
Can any of the company-specific risk be diversified away by investing in both Woodside Energy 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 Energy and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woodside Energy Group and CNOOC, you can compare the effects of market volatilities on Woodside Energy 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 Energy with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woodside Energy and CNOOC.
Diversification Opportunities for Woodside Energy and CNOOC
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Woodside and CNOOC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Woodside Energy Group and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and Woodside Energy 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 Energy Group 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 Energy i.e., Woodside Energy and CNOOC go up and down completely randomly.
Pair Corralation between Woodside Energy and CNOOC
If you would invest 218.00 in CNOOC on September 12, 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 Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Woodside Energy Group vs. CNOOC
Performance |
| Timeline |
| Woodside Energy Group |
| CNOOC |
Woodside Energy and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woodside Energy and CNOOC
The main advantage of trading using opposite Woodside Energy and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woodside Energy 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 Energy vs. Datang International Power | Woodside Energy vs. Check Point Software | Woodside Energy vs. Hyrican Informationssysteme Aktiengesellschaft | Woodside Energy vs. Zijin Mining Group |
| CNOOC vs. AGNC INVESTMENT | CNOOC vs. PennyMac Mortgage Investment | CNOOC vs. Postal Savings Bank | CNOOC vs. Datang International Power |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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