Correlation Between 2G ENERGY and CN YANGTPWR
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and CN YANGTPWR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 2G ENERGY and CN YANGTPWR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and CN YANGTPWR GDR, you can compare the effects of market volatilities on 2G ENERGY and CN YANGTPWR 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 2G ENERGY with a short position of CN YANGTPWR. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and CN YANGTPWR.
Diversification Opportunities for 2G ENERGY and CN YANGTPWR
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 2GB and CYZB is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and CN YANGTPWR GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN YANGTPWR GDR and 2G ENERGY 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 2G ENERGY are associated (or correlated) with CN YANGTPWR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN YANGTPWR GDR has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and CN YANGTPWR go up and down completely randomly.
Pair Corralation between 2G ENERGY and CN YANGTPWR
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the CN YANGTPWR. In addition to that, 2G ENERGY is 2.72 times more volatile than CN YANGTPWR GDR. It trades about -0.06 of its total potential returns per unit of risk. CN YANGTPWR GDR is currently generating about 0.05 per unit of volatility. If you would invest 3,340 in CN YANGTPWR GDR on August 29, 2024 and sell it today you would earn a total of 40.00 from holding CN YANGTPWR GDR or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
2G ENERGY vs. CN YANGTPWR GDR
Performance |
| Timeline |
| 2G ENERGY |
| CN YANGTPWR GDR |
2G ENERGY and CN YANGTPWR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and CN YANGTPWR
The main advantage of trading using opposite 2G ENERGY and CN YANGTPWR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, CN YANGTPWR 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 CN YANGTPWR will offset losses from the drop in CN YANGTPWR's long position.| 2G ENERGY vs. FISH PAYK HEALTH | 2G ENERGY vs. GREENX METALS LTD | 2G ENERGY vs. Lion One Metals | 2G ENERGY vs. Zijin Mining Group |
| CN YANGTPWR vs. Verizon Communications | CN YANGTPWR vs. United Natural Foods | CN YANGTPWR vs. SBA Communications Corp | CN YANGTPWR vs. Iridium Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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