Correlation Between CNOOC and Shandong Publishing
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By analyzing existing cross correlation between CNOOC Limited and Shandong Publishing Media, you can compare the effects of market volatilities on CNOOC and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Shandong Publishing.
Diversification Opportunities for CNOOC and Shandong Publishing
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNOOC and Shandong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of CNOOC i.e., CNOOC and Shandong Publishing go up and down completely randomly.
Pair Corralation between CNOOC and Shandong Publishing
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.8 times more return on investment than Shandong Publishing. However, CNOOC Limited is 1.25 times less risky than Shandong Publishing. It trades about 0.09 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.07 per unit of risk. If you would invest 1,379 in CNOOC Limited on September 26, 2024 and sell it today you would earn a total of 1,496 from holding CNOOC Limited or generate 108.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CNOOC Limited vs. Shandong Publishing Media
Performance |
Timeline |
CNOOC Limited |
Shandong Publishing Media |
CNOOC and Shandong Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNOOC and Shandong Publishing
The main advantage of trading using opposite CNOOC and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.CNOOC vs. Jiangxi Hengda Hi Tech | CNOOC vs. Guangdong Shenglu Telecommunication | CNOOC vs. Xiangyang Automobile Bearing | CNOOC vs. Guangzhou Automobile Group |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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