Correlation Between CNOOC and Jiangsu Xinri
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By analyzing existing cross correlation between CNOOC Limited and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on CNOOC and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Jiangsu Xinri.
Diversification Opportunities for CNOOC and Jiangsu Xinri
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNOOC and Jiangsu is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of CNOOC i.e., CNOOC and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between CNOOC and Jiangsu Xinri
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.76 times more return on investment than Jiangsu Xinri. However, CNOOC Limited is 1.32 times less risky than Jiangsu Xinri. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.03 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 | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CNOOC Limited vs. Jiangsu Xinri E Vehicle
Performance |
Timeline |
CNOOC Limited |
Jiangsu Xinri E |
CNOOC and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNOOC and Jiangsu Xinri
The main advantage of trading using opposite CNOOC and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.CNOOC vs. Jiangxi Hengda Hi Tech | CNOOC vs. Guangdong Shenglu Telecommunication | CNOOC vs. Xiangyang Automobile Bearing | CNOOC vs. Guangzhou Automobile Group |
Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. China Mobile Limited | Jiangsu Xinri vs. CNOOC Limited | Jiangsu Xinri vs. Ping An Insurance |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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