Correlation Between CGN Nuclear and China Asset
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By analyzing existing cross correlation between CGN Nuclear Technology and China Asset Management, you can compare the effects of market volatilities on CGN Nuclear and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Nuclear and China Asset.
Diversification Opportunities for CGN Nuclear and China Asset
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CGN and China is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CGN Nuclear Technology and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of CGN Nuclear i.e., CGN Nuclear and China Asset go up and down completely randomly.
Pair Corralation between CGN Nuclear and China Asset
Assuming the 90 days trading horizon CGN Nuclear Technology is expected to under-perform the China Asset. In addition to that, CGN Nuclear is 2.03 times more volatile than China Asset Management. It trades about -0.02 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.37 per unit of volatility. If you would invest 309.00 in China Asset Management on November 2, 2024 and sell it today you would earn a total of 87.00 from holding China Asset Management or generate 28.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGN Nuclear Technology vs. China Asset Management
Performance |
| Timeline |
| CGN Nuclear Technology |
| China Asset Management |
CGN Nuclear and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Nuclear and China Asset
The main advantage of trading using opposite CGN Nuclear and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Nuclear position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| CGN Nuclear vs. China Asset Management | CGN Nuclear vs. Hangzhou Arcvideo Technology | CGN Nuclear vs. Shuhua Sports Co | CGN Nuclear vs. Cicc Fund Management |
| China Asset vs. Youyou Foods Co | China Asset vs. New Hope Dairy | China Asset vs. Chongqing Road Bridge | China Asset vs. Xinjiang Beixin RoadBridge |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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