Correlation Between CGN Nuclear and Shandong Polymer
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By analyzing existing cross correlation between CGN Nuclear Technology and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on CGN Nuclear and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Nuclear and Shandong Polymer.
Diversification Opportunities for CGN Nuclear and Shandong Polymer
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CGN and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CGN Nuclear Technology and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of CGN Nuclear i.e., CGN Nuclear and Shandong Polymer go up and down completely randomly.
Pair Corralation between CGN Nuclear and Shandong Polymer
Assuming the 90 days trading horizon CGN Nuclear Technology is expected to under-perform the Shandong Polymer. But the stock apears to be less risky and, when comparing its historical volatility, CGN Nuclear Technology is 1.43 times less risky than Shandong Polymer. The stock trades about -0.31 of its potential returns per unit of risk. The Shandong Polymer Biochemicals is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 458.00 in Shandong Polymer Biochemicals on October 18, 2024 and sell it today you would lose (38.00) from holding Shandong Polymer Biochemicals or give up 8.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGN Nuclear Technology vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| CGN Nuclear Technology |
| Shandong Polymer Bio |
CGN Nuclear and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Nuclear and Shandong Polymer
The main advantage of trading using opposite CGN Nuclear and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Nuclear position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| CGN Nuclear vs. Zijin Mining Group | CGN Nuclear vs. Wanhua Chemical Group | CGN Nuclear vs. Baoshan Iron Steel | CGN Nuclear vs. Shandong Gold Mining |
| Shandong Polymer vs. Tianshui Huatian Technology | Shandong Polymer vs. Harbin Hatou Investment | Shandong Polymer vs. Hubei Geoway Investment | Shandong Polymer vs. CGN Nuclear Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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