Correlation Between Xinjiang Baodi and CNOOC
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By analyzing existing cross correlation between Xinjiang Baodi Mining and CNOOC Limited, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and CNOOC.
Diversification Opportunities for Xinjiang Baodi and CNOOC
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinjiang and CNOOC is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and CNOOC go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and CNOOC
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.24 times more return on investment than CNOOC. However, Xinjiang Baodi is 1.24 times more volatile than CNOOC Limited. It trades about 0.17 of its potential returns per unit of risk. CNOOC Limited is currently generating about 0.04 per unit of risk. If you would invest 536.00 in Xinjiang Baodi Mining on September 23, 2024 and sell it today you would earn a total of 159.00 from holding Xinjiang Baodi Mining or generate 29.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Baodi Mining vs. CNOOC Limited
Performance |
Timeline |
Xinjiang Baodi Mining |
CNOOC Limited |
Xinjiang Baodi and CNOOC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Baodi and CNOOC
The main advantage of trading using opposite Xinjiang Baodi and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
CNOOC vs. Xinjiang Baodi Mining | CNOOC vs. Huaibei Mining Holdings | CNOOC vs. Jonjee Hi tech Industrial | CNOOC vs. Railway Signal Communication |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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