Correlation Between China Citic and CGN Nuclear
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By analyzing existing cross correlation between China Citic Bank and CGN Nuclear Technology, you can compare the effects of market volatilities on China Citic 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 China Citic with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and CGN Nuclear.
Diversification Opportunities for China Citic and CGN Nuclear
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and CGN is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank 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 China Citic 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 Citic Bank 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 China Citic i.e., China Citic and CGN Nuclear go up and down completely randomly.
Pair Corralation between China Citic and CGN Nuclear
Assuming the 90 days trading horizon China Citic Bank is expected to generate 0.81 times more return on investment than CGN Nuclear. However, China Citic Bank is 1.23 times less risky than CGN Nuclear. It trades about 0.04 of its potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.01 per unit of risk. If you would invest 482.00 in China Citic Bank on August 25, 2024 and sell it today you would earn a total of 178.00 from holding China Citic Bank or generate 36.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Citic Bank vs. CGN Nuclear Technology
Performance |
| Timeline |
| China Citic Bank |
| CGN Nuclear Technology |
China Citic and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and CGN Nuclear
The main advantage of trading using opposite China Citic and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic 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.| China Citic vs. Bomin Electronics Co | China Citic vs. CIMC Vehicles Co | China Citic vs. Unigroup Guoxin Microelectronics | China Citic vs. Xiangyang Automobile Bearing |
| CGN Nuclear vs. Zijin Mining Group | CGN Nuclear vs. Wanhua Chemical Group | CGN Nuclear vs. Baoshan Iron Steel | CGN Nuclear vs. Shandong Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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