Correlation Between CGN Nuclear and Luolai Home
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By analyzing existing cross correlation between CGN Nuclear Technology and Luolai Home Textile, you can compare the effects of market volatilities on CGN Nuclear and Luolai Home 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 CGN Nuclear with a short position of Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Nuclear and Luolai Home.
Diversification Opportunities for CGN Nuclear and Luolai Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CGN and Luolai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CGN Nuclear Technology and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile and CGN Nuclear 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 CGN Nuclear Technology are associated (or correlated) with Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of CGN Nuclear i.e., CGN Nuclear and Luolai Home go up and down completely randomly.
Pair Corralation between CGN Nuclear and Luolai Home
Assuming the 90 days trading horizon CGN Nuclear Technology is expected to generate 1.48 times more return on investment than Luolai Home. However, CGN Nuclear is 1.48 times more volatile than Luolai Home Textile. It trades about 0.01 of its potential returns per unit of risk. Luolai Home Textile is currently generating about -0.01 per unit of risk. If you would invest 791.00 in CGN Nuclear Technology on August 31, 2024 and sell it today you would lose (4.00) from holding CGN Nuclear Technology or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
CGN Nuclear Technology vs. Luolai Home Textile
Performance |
| Timeline |
| CGN Nuclear Technology |
| Luolai Home Textile |
CGN Nuclear and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Nuclear and Luolai Home
The main advantage of trading using opposite CGN Nuclear and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Nuclear position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| CGN Nuclear vs. Mango Excellent Media | CGN Nuclear vs. Chengdu B ray Media | CGN Nuclear vs. Threes Company Media | CGN Nuclear vs. China Publishing Media |
| Luolai Home vs. China State Construction | Luolai Home vs. China Merchants Shekou | Luolai Home vs. Huafa Industrial Co | Luolai Home vs. China International Capital |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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