Correlation Between Guangzhou Seagull and CNOOC
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and CNOOC Limited, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and CNOOC.
Diversification Opportunities for Guangzhou Seagull and CNOOC
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and CNOOC is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and CNOOC go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and CNOOC
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.5 times more return on investment than CNOOC. However, Guangzhou Seagull is 1.5 times more volatile than CNOOC Limited. It trades about 0.08 of its potential returns per unit of risk. CNOOC Limited is currently generating about 0.04 per unit of risk. If you would invest 260.00 in Guangzhou Seagull Kitchen on September 25, 2024 and sell it today you would earn a total of 36.00 from holding Guangzhou Seagull Kitchen or generate 13.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Seagull Kitchen vs. CNOOC Limited
Performance |
Timeline |
Guangzhou Seagull Kitchen |
CNOOC Limited |
Guangzhou Seagull and CNOOC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Seagull and CNOOC
The main advantage of trading using opposite Guangzhou Seagull and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.Guangzhou Seagull vs. Cambricon Technologies Corp | Guangzhou Seagull vs. Loongson Technology Corp | Guangzhou Seagull vs. Shenzhen Fortune Trend | Guangzhou Seagull vs. Chongqing Road Bridge |
CNOOC vs. Dalian Thermal Power | CNOOC vs. Guangzhou Seagull Kitchen | CNOOC vs. Marssenger Kitchenware Co | CNOOC vs. Beijing HuaYuanYiTong Thermal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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