Correlation Between Guangxi Wuzhou and CGN Nuclear
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and CGN Nuclear Technology, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and CGN Nuclear.
Diversification Opportunities for Guangxi Wuzhou and CGN Nuclear
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangxi and CGN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and CGN Nuclear go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and CGN Nuclear
Assuming the 90 days trading horizon Guangxi Wuzhou is expected to generate 2.29 times less return on investment than CGN Nuclear. But when comparing it to its historical volatility, Guangxi Wuzhou Communications is 1.84 times less risky than CGN Nuclear. It trades about 0.14 of its potential returns per unit of risk. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. CGN Nuclear Technology
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| CGN Nuclear Technology |
Guangxi Wuzhou and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and CGN Nuclear
The main advantage of trading using opposite Guangxi Wuzhou and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Markor International Home | Guangxi Wuzhou vs. Nanxing Furniture Machinery | Guangxi Wuzhou vs. Der International Home | Guangxi Wuzhou vs. Puyang Huicheng Electronic |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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