Correlation Between CGN Power and Chinese Universe
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By analyzing existing cross correlation between CGN Power and Chinese Universe Publishing, you can compare the effects of market volatilities on CGN Power and Chinese Universe 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 Power with a short position of Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Power and Chinese Universe.
Diversification Opportunities for CGN Power and Chinese Universe
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CGN and Chinese is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CGN Power and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub and CGN Power 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 Power are associated (or correlated) with Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of CGN Power i.e., CGN Power and Chinese Universe go up and down completely randomly.
Pair Corralation between CGN Power and Chinese Universe
Assuming the 90 days trading horizon CGN Power is expected to generate 5.84 times less return on investment than Chinese Universe. But when comparing it to its historical volatility, CGN Power is 1.4 times less risky than Chinese Universe. It trades about 0.04 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,289 in Chinese Universe Publishing on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Chinese Universe Publishing or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGN Power vs. Chinese Universe Publishing
Performance |
| Timeline |
| CGN Power |
| Chinese Universe Pub |
CGN Power and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Power and Chinese Universe
The main advantage of trading using opposite CGN Power and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Power position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| CGN Power vs. Guangzhou Jinyi Media | CGN Power vs. Shenzhen Topway Video | CGN Power vs. Sanbo Hospital Management | CGN Power vs. Dook Media Group |
| Chinese Universe vs. Ming Yang Smart | Chinese Universe vs. 159681 | Chinese Universe vs. 159005 | Chinese Universe vs. Loctek Ergonomic 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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