Correlation Between Chengdu B and CNOOC
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By analyzing existing cross correlation between Chengdu B ray Media and CNOOC Limited, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and CNOOC.
Diversification Opportunities for Chengdu B and CNOOC
Good diversification
The 3 months correlation between Chengdu and CNOOC is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Chengdu B 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 Chengdu B ray Media 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 Limited has no effect on the direction of Chengdu B i.e., Chengdu B and CNOOC go up and down completely randomly.
Pair Corralation between Chengdu B and CNOOC
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 2.47 times more return on investment than CNOOC. However, Chengdu B is 2.47 times more volatile than CNOOC Limited. It trades about -0.02 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.04 per unit of risk. If you would invest 487.00 in Chengdu B ray Media on October 7, 2024 and sell it today you would lose (48.00) from holding Chengdu B ray Media or give up 9.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu B ray Media vs. CNOOC Limited
Performance |
Timeline |
Chengdu B ray |
CNOOC Limited |
Chengdu B and CNOOC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu B and CNOOC
The main advantage of trading using opposite Chengdu B and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.Chengdu B vs. China Life Insurance | ||
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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