Correlation Between Yili Chuanning and CGN Nuclear
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and CGN Nuclear Technology, you can compare the effects of market volatilities on Yili Chuanning 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 Yili Chuanning with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and CGN Nuclear.
Diversification Opportunities for Yili Chuanning and CGN Nuclear
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yili and CGN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology 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 Yili Chuanning 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 Yili Chuanning Biotechnology 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 Yili Chuanning i.e., Yili Chuanning and CGN Nuclear go up and down completely randomly.
Pair Corralation between Yili Chuanning and CGN Nuclear
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the CGN Nuclear. But the stock apears to be less risky and, when comparing its historical volatility, Yili Chuanning Biotechnology is 1.2 times less risky than CGN Nuclear. The stock trades about -0.22 of its potential returns per unit of risk. The CGN Nuclear Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 722.00 in CGN Nuclear Technology on September 5, 2024 and sell it today you would earn a total of 79.00 from holding CGN Nuclear Technology or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. CGN Nuclear Technology
Performance |
| Timeline |
| Yili Chuanning Biote |
| CGN Nuclear Technology |
Yili Chuanning and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and CGN Nuclear
The main advantage of trading using opposite Yili Chuanning and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning 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.| Yili Chuanning vs. Kweichow Moutai Co | Yili Chuanning vs. Shenzhen Mindray Bio Medical | Yili Chuanning vs. Jiangsu Pacific Quartz | Yili Chuanning vs. G bits Network Technology |
| CGN Nuclear vs. State Grid InformationCommunication | CGN Nuclear vs. Guangxi Wuzhou Communications | CGN Nuclear vs. Yili Chuanning Biotechnology | CGN Nuclear vs. Xinjiang Communications Construction |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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