Correlation Between CGN Nuclear and Bank of China
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By analyzing existing cross correlation between CGN Nuclear Technology and Bank of China, you can compare the effects of market volatilities on CGN Nuclear and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Nuclear and Bank of China.
Diversification Opportunities for CGN Nuclear and Bank of China
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CGN and Bank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CGN Nuclear Technology and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of CGN Nuclear i.e., CGN Nuclear and Bank of China go up and down completely randomly.
Pair Corralation between CGN Nuclear and Bank of China
Assuming the 90 days trading horizon CGN Nuclear is expected to generate 6.43 times less return on investment than Bank of China. In addition to that, CGN Nuclear is 2.08 times more volatile than Bank of China. It trades about 0.01 of its total potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of volatility. If you would invest 398.00 in Bank of China on October 16, 2024 and sell it today you would earn a total of 137.00 from holding Bank of China or generate 34.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGN Nuclear Technology vs. Bank of China
Performance |
| Timeline |
| CGN Nuclear Technology |
| Bank of China |
CGN Nuclear and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Nuclear and Bank of China
The main advantage of trading using opposite CGN Nuclear and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Nuclear position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| CGN Nuclear vs. CITIC Metal Co | CGN Nuclear vs. Zhejiang Yongjin Metal | CGN Nuclear vs. Jiangnan Mould Plastic | CGN Nuclear vs. Shanghai Yanpu Metal |
| Bank of China vs. CGN Nuclear Technology | Bank of China vs. Sinofibers Technology Co | Bank of China vs. Easyhome New Retail | Bank of China vs. Linewell Software Co |
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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