Correlation Between Zoy Home and CNOOC
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By analyzing existing cross correlation between Zoy Home Furnishing and CNOOC Limited, you can compare the effects of market volatilities on Zoy Home 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 Zoy Home with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and CNOOC.
Diversification Opportunities for Zoy Home and CNOOC
Excellent diversification
The 3 months correlation between Zoy and CNOOC is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Zoy Home 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and CNOOC go up and down completely randomly.
Pair Corralation between Zoy Home and CNOOC
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.5 times more return on investment than CNOOC. However, Zoy Home is 1.5 times more volatile than CNOOC Limited. It trades about 0.01 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.39 per unit of risk. If you would invest 1,147 in Zoy Home Furnishing on December 4, 2024 and sell it today you would earn a total of 0.00 from holding Zoy Home Furnishing or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zoy Home Furnishing vs. CNOOC Limited
Performance |
Timeline |
Zoy Home Furnishing |
CNOOC Limited |
Zoy Home and CNOOC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoy Home and CNOOC
The main advantage of trading using opposite Zoy Home and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home 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.Zoy Home vs. Sichuan Yahua Industrial | Zoy Home vs. Ligao Foods CoLtd | Zoy Home vs. Guangzhou Haozhi Industrial | Zoy Home vs. Qingdao Choho Industrial |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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