Correlation Between CNPC Capital and JCET Group
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By analyzing existing cross correlation between CNPC Capital Co and JCET Group Co, you can compare the effects of market volatilities on CNPC Capital and JCET Group 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 CNPC Capital with a short position of JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNPC Capital and JCET Group.
Diversification Opportunities for CNPC Capital and JCET Group
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNPC and JCET is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CNPC Capital Co and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group and CNPC Capital 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 CNPC Capital Co are associated (or correlated) with JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of CNPC Capital i.e., CNPC Capital and JCET Group go up and down completely randomly.
Pair Corralation between CNPC Capital and JCET Group
Assuming the 90 days trading horizon CNPC Capital Co is expected to generate 1.18 times more return on investment than JCET Group. However, CNPC Capital is 1.18 times more volatile than JCET Group Co. It trades about 0.08 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.07 per unit of risk. If you would invest 544.00 in CNPC Capital Co on September 27, 2024 and sell it today you would earn a total of 170.00 from holding CNPC Capital Co or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNPC Capital Co vs. JCET Group Co
Performance |
| Timeline |
| CNPC Capital |
| JCET Group |
CNPC Capital and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNPC Capital and JCET Group
The main advantage of trading using opposite CNPC Capital and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNPC Capital position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic Technology |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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