Correlation Between Beken Corp and CNOOC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beken Corp and CNOOC Limited, you can compare the effects of market volatilities on Beken Corp 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 Beken Corp with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beken Corp and CNOOC.
Diversification Opportunities for Beken Corp and CNOOC
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beken and CNOOC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Beken Corp and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Beken Corp 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 Beken Corp 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 Beken Corp i.e., Beken Corp and CNOOC go up and down completely randomly.
Pair Corralation between Beken Corp and CNOOC
Assuming the 90 days trading horizon Beken Corp is expected to generate 2.8 times more return on investment than CNOOC. However, Beken Corp is 2.8 times more volatile than CNOOC Limited. It trades about 0.13 of its potential returns per unit of risk. CNOOC Limited is currently generating about 0.28 per unit of risk. If you would invest 2,809 in Beken Corp on September 26, 2024 and sell it today you would earn a total of 286.00 from holding Beken Corp or generate 10.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Beken Corp vs. CNOOC Limited
Performance |
Timeline |
Beken Corp |
CNOOC Limited |
Beken Corp and CNOOC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beken Corp and CNOOC
The main advantage of trading using opposite Beken Corp and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beken Corp 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.Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
CNOOC vs. Jiangxi Hengda Hi Tech | CNOOC vs. Guangdong Shenglu Telecommunication | CNOOC vs. Xiangyang Automobile Bearing | CNOOC vs. Guangzhou Automobile Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |