Correlation Between COL Digital and CGN Nuclear
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By analyzing existing cross correlation between COL Digital Publishing and CGN Nuclear Technology, you can compare the effects of market volatilities on COL Digital and CGN Nuclear 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 COL Digital with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and CGN Nuclear.
Diversification Opportunities for COL Digital and CGN Nuclear
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and CGN is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and CGN Nuclear Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Nuclear Technology and COL Digital 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 COL Digital Publishing are associated (or correlated) with CGN Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Nuclear Technology has no effect on the direction of COL Digital i.e., COL Digital and CGN Nuclear go up and down completely randomly.
Pair Corralation between COL Digital and CGN Nuclear
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.42 times more return on investment than CGN Nuclear. However, COL Digital is 2.42 times more volatile than CGN Nuclear Technology. It trades about 0.19 of its potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.22 per unit of risk. If you would invest 1,744 in COL Digital Publishing on August 25, 2024 and sell it today you would earn a total of 1,039 from holding COL Digital Publishing or generate 59.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. CGN Nuclear Technology
Performance |
| Timeline |
| COL Digital Publishing |
| CGN Nuclear Technology |
COL Digital and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and CGN Nuclear
The main advantage of trading using opposite COL Digital and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, CGN Nuclear 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 CGN Nuclear will offset losses from the drop in CGN Nuclear's long position.| COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital vs. Bank of China |
| CGN Nuclear vs. Zijin Mining Group | CGN Nuclear vs. Wanhua Chemical Group | CGN Nuclear vs. Baoshan Iron Steel | CGN Nuclear vs. Shandong Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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