Correlation Between Penyao Environmental and CGN Nuclear
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By analyzing existing cross correlation between Penyao Environmental Protection and CGN Nuclear Technology, you can compare the effects of market volatilities on Penyao Environmental 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 Penyao Environmental with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and CGN Nuclear.
Diversification Opportunities for Penyao Environmental and CGN Nuclear
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Penyao and CGN is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio 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 Penyao Environmental 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 Penyao Environmental Protection 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 Penyao Environmental i.e., Penyao Environmental and CGN Nuclear go up and down completely randomly.
Pair Corralation between Penyao Environmental and CGN Nuclear
Assuming the 90 days trading horizon Penyao Environmental is expected to generate 1.16 times less return on investment than CGN Nuclear. But when comparing it to its historical volatility, Penyao Environmental Protection is 1.24 times less risky than CGN Nuclear. It trades about 0.01 of its potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 778.00 in CGN Nuclear Technology on August 29, 2024 and sell it today you would earn a total of 7.00 from holding CGN Nuclear Technology or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. CGN Nuclear Technology
Performance |
| Timeline |
| Penyao Environmental |
| CGN Nuclear Technology |
Penyao Environmental and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and CGN Nuclear
The main advantage of trading using opposite Penyao Environmental and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental 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.| Penyao Environmental vs. Kweichow Moutai Co | Penyao Environmental vs. Shenzhen Mindray Bio Medical | Penyao Environmental vs. G bits Network Technology | Penyao Environmental vs. Shenzhen Transsion Holdings |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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