Correlation Between CNOOC and Qingdao Citymedia
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By analyzing existing cross correlation between CNOOC Limited and Qingdao Citymedia Co, you can compare the effects of market volatilities on CNOOC and Qingdao Citymedia 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 CNOOC with a short position of Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Qingdao Citymedia.
Diversification Opportunities for CNOOC and Qingdao Citymedia
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CNOOC and Qingdao is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia and CNOOC 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 CNOOC Limited are associated (or correlated) with Qingdao Citymedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Citymedia has no effect on the direction of CNOOC i.e., CNOOC and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between CNOOC and Qingdao Citymedia
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.54 times more return on investment than Qingdao Citymedia. However, CNOOC Limited is 1.85 times less risky than Qingdao Citymedia. It trades about 0.04 of its potential returns per unit of risk. Qingdao Citymedia Co is currently generating about -0.01 per unit of risk. If you would invest 2,788 in CNOOC Limited on September 25, 2024 and sell it today you would earn a total of 57.00 from holding CNOOC Limited or generate 2.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CNOOC Limited vs. Qingdao Citymedia Co
Performance |
Timeline |
CNOOC Limited |
Qingdao Citymedia |
CNOOC and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNOOC and Qingdao Citymedia
The main advantage of trading using opposite CNOOC and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Qingdao Citymedia 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 Qingdao Citymedia will offset losses from the drop in Qingdao Citymedia's long position.CNOOC vs. Dalian Thermal Power | CNOOC vs. Guangzhou Seagull Kitchen | CNOOC vs. Marssenger Kitchenware Co | CNOOC vs. Beijing HuaYuanYiTong Thermal |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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