Correlation Between CGN Nuclear and Loongson Technology
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By analyzing existing cross correlation between CGN Nuclear Technology and Loongson Technology Corp, you can compare the effects of market volatilities on CGN Nuclear and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Nuclear and Loongson Technology.
Diversification Opportunities for CGN Nuclear and Loongson Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CGN and Loongson is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CGN Nuclear Technology and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of CGN Nuclear i.e., CGN Nuclear and Loongson Technology go up and down completely randomly.
Pair Corralation between CGN Nuclear and Loongson Technology
Assuming the 90 days trading horizon CGN Nuclear is expected to generate 2.0 times less return on investment than Loongson Technology. But when comparing it to its historical volatility, CGN Nuclear Technology is 1.42 times less risky than Loongson Technology. It trades about 0.18 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 12,923 in Loongson Technology Corp on September 5, 2024 and sell it today you would earn a total of 2,967 from holding Loongson Technology Corp or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGN Nuclear Technology vs. Loongson Technology Corp
Performance |
| Timeline |
| CGN Nuclear Technology |
| Loongson Technology Corp |
CGN Nuclear and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Nuclear and Loongson Technology
The main advantage of trading using opposite CGN Nuclear and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Nuclear position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| CGN Nuclear vs. State Grid InformationCommunication | CGN Nuclear vs. Guangxi Wuzhou Communications | CGN Nuclear vs. Yili Chuanning Biotechnology | CGN Nuclear vs. Xinjiang Communications Construction |
| Loongson Technology vs. Heilongjiang Publishing Media | Loongson Technology vs. Zhejiang Daily Media | Loongson Technology vs. Qtone Education Group | Loongson Technology vs. Thinkingdom Media Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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