Correlation Between Unit and CNOOC
Can any of the company-specific risk be diversified away by investing in both Unit and CNOOC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Unit and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unit Corporation and CNOOC Limited, you can compare the effects of market volatilities on Unit 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 Unit with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unit and CNOOC.
Diversification Opportunities for Unit and CNOOC
Pay attention - limited upside
The 3 months correlation between Unit and CNOOC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unit Corp. and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Unit 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 Unit Corporation 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 Unit i.e., Unit and CNOOC go up and down completely randomly.
Pair Corralation between Unit and CNOOC
If you would invest (100.00) in CNOOC Limited on January 24, 2024 and sell it today you would earn a total of 100.00 from holding CNOOC Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unit Corp. vs. CNOOC Limited
Performance |
| Timeline |
| Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNOOC Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Unit and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unit and CNOOC
The main advantage of trading using opposite Unit and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unit 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.| Unit vs. Turning Point Brands | Unit vs. Torm PLC Class | Unit vs. Zoom Video Communications | Unit vs. Verra Mobility Corp |
| CNOOC vs. Yips Chemical Holdings | CNOOC vs. Flexible Solutions International | CNOOC vs. Ecolab Inc | CNOOC vs. Alphatec Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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