Correlation Between China Galaxy and CNPC Capital
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By analyzing existing cross correlation between China Galaxy Securities and CNPC Capital Co, you can compare the effects of market volatilities on China Galaxy 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 Galaxy with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and CNPC Capital.
Diversification Opportunities for China Galaxy and CNPC Capital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and CNPC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities 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 Galaxy 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 Galaxy Securities 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 Galaxy i.e., China Galaxy and CNPC Capital go up and down completely randomly.
Pair Corralation between China Galaxy and CNPC Capital
Assuming the 90 days trading horizon China Galaxy Securities is expected to generate 1.07 times more return on investment than CNPC Capital. However, China Galaxy is 1.07 times more volatile than CNPC Capital Co. It trades about 0.18 of its potential returns per unit of risk. CNPC Capital Co is currently generating about -0.06 per unit of risk. If you would invest 1,490 in China Galaxy Securities on September 27, 2024 and sell it today you would earn a total of 90.00 from holding China Galaxy Securities or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Galaxy Securities vs. CNPC Capital Co
Performance |
| Timeline |
| China Galaxy Securities |
| CNPC Capital |
China Galaxy and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Galaxy and CNPC Capital
The main advantage of trading using opposite China Galaxy and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy 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 Galaxy vs. Kweichow Moutai Co | China Galaxy vs. Contemporary Amperex Technology | China Galaxy vs. G bits Network Technology | China Galaxy vs. BYD Co Ltd |
| CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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