Correlation Between Chinese Universe and CGN Power
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By analyzing existing cross correlation between Chinese Universe Publishing and CGN Power, you can compare the effects of market volatilities on Chinese Universe and CGN Power 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 Chinese Universe with a short position of CGN Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and CGN Power.
Diversification Opportunities for Chinese Universe and CGN Power
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chinese and CGN is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and CGN Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Power and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with CGN Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Power has no effect on the direction of Chinese Universe i.e., Chinese Universe and CGN Power go up and down completely randomly.
Pair Corralation between Chinese Universe and CGN Power
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 1.4 times more return on investment than CGN Power. However, Chinese Universe is 1.4 times more volatile than CGN Power. It trades about 0.16 of its potential returns per unit of risk. CGN Power is currently generating about 0.04 per unit of risk. If you would invest 1,289 in Chinese Universe Publishing on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Chinese Universe Publishing or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. CGN Power
Performance |
| Timeline |
| Chinese Universe Pub |
| CGN Power |
Chinese Universe and CGN Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and CGN Power
The main advantage of trading using opposite Chinese Universe and CGN Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, CGN Power 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 Power will offset losses from the drop in CGN Power's long position.| Chinese Universe vs. Ming Yang Smart | Chinese Universe vs. 159681 | Chinese Universe vs. 159005 | Chinese Universe vs. Loctek Ergonomic Technology |
| CGN Power vs. Guangzhou Jinyi Media | CGN Power vs. Shenzhen Topway Video | CGN Power vs. Sanbo Hospital Management | CGN Power vs. Dook Media Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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