Correlation Between Huaneng Lancang and CGN Nuclear
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By analyzing existing cross correlation between Huaneng Lancang River and CGN Nuclear Technology, you can compare the effects of market volatilities on Huaneng Lancang 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 Huaneng Lancang with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaneng Lancang and CGN Nuclear.
Diversification Opportunities for Huaneng Lancang and CGN Nuclear
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaneng and CGN is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Huaneng Lancang River 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 Huaneng Lancang 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 Huaneng Lancang River 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 Huaneng Lancang i.e., Huaneng Lancang and CGN Nuclear go up and down completely randomly.
Pair Corralation between Huaneng Lancang and CGN Nuclear
Assuming the 90 days trading horizon Huaneng Lancang River is expected to under-perform the CGN Nuclear. But the stock apears to be less risky and, when comparing its historical volatility, Huaneng Lancang River is 1.87 times less risky than CGN Nuclear. The stock trades about -0.37 of its potential returns per unit of risk. The CGN Nuclear Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 709.00 in CGN Nuclear Technology on August 29, 2024 and sell it today you would earn a total of 76.00 from holding CGN Nuclear Technology or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaneng Lancang River vs. CGN Nuclear Technology
Performance |
| Timeline |
| Huaneng Lancang River |
| CGN Nuclear Technology |
Huaneng Lancang and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaneng Lancang and CGN Nuclear
The main advantage of trading using opposite Huaneng Lancang and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaneng Lancang 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.| Huaneng Lancang vs. Aofu Environmental Technology | Huaneng Lancang vs. Tongxing Environmental Protection | Huaneng Lancang vs. City Development Environment | Huaneng Lancang vs. Hainan Haiqi Transportation |
| CGN Nuclear vs. Hunan Mendale Hometextile | CGN Nuclear vs. UE Furniture Co | CGN Nuclear vs. Shenzhen Centralcon Investment | CGN Nuclear vs. Vanfund Urban Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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