Correlation Between China World and CNPC Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between China World Trade and CNPC Capital Co, you can compare the effects of market volatilities on China World and CNPC Capital 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 China World with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and CNPC Capital.
Diversification Opportunities for China World and CNPC Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and CNPC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and China World 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 China World Trade are associated (or correlated) with CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of China World i.e., China World and CNPC Capital go up and down completely randomly.
Pair Corralation between China World and CNPC Capital
Assuming the 90 days trading horizon China World Trade is expected to generate 0.7 times more return on investment than CNPC Capital. However, China World Trade is 1.43 times less risky than CNPC Capital. It trades about -0.06 of its potential returns per unit of risk. CNPC Capital Co is currently generating about -0.18 per unit of risk. If you would invest 2,431 in China World Trade on October 17, 2024 and sell it today you would lose (42.00) from holding China World Trade or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. CNPC Capital Co
Performance |
| Timeline |
| China World Trade |
| CNPC Capital |
China World and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and CNPC Capital
The main advantage of trading using opposite China World and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, CNPC Capital 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.| China World vs. Ningbo Fangzheng Automobile | China World vs. Guangdong Wens Foodstuff | China World vs. Eastroc Beverage Group | China World vs. Anhui Jianghuai Automobile |
| CNPC Capital vs. China World Trade | CNPC Capital vs. Changjiang Publishing Media | CNPC Capital vs. Heilongjiang Publishing Media | CNPC Capital vs. Omnijoi Media Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings 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 | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |