Correlation Between Changshu Tongrun and CGN Nuclear
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By analyzing existing cross correlation between Changshu Tongrun Auto and CGN Nuclear Technology, you can compare the effects of market volatilities on Changshu Tongrun 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 Changshu Tongrun with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tongrun and CGN Nuclear.
Diversification Opportunities for Changshu Tongrun and CGN Nuclear
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changshu and CGN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tongrun Auto 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 Changshu Tongrun 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 Changshu Tongrun Auto 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 Changshu Tongrun i.e., Changshu Tongrun and CGN Nuclear go up and down completely randomly.
Pair Corralation between Changshu Tongrun and CGN Nuclear
Assuming the 90 days trading horizon Changshu Tongrun is expected to generate 1.3 times less return on investment than CGN Nuclear. In addition to that, Changshu Tongrun is 1.44 times more volatile than CGN Nuclear Technology. It trades about 0.06 of its total potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.11 per unit of volatility. 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Tongrun Auto vs. CGN Nuclear Technology
Performance |
| Timeline |
| Changshu Tongrun Auto |
| CGN Nuclear Technology |
Changshu Tongrun and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tongrun and CGN Nuclear
The main advantage of trading using opposite Changshu Tongrun and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tongrun 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.| Changshu Tongrun vs. Changshu Tianyin Electromechan | Changshu Tongrun vs. Changshu Ruite Electric | Changshu Tongrun vs. Changshu Automotive Trim | Changshu Tongrun vs. Zhejiang Zanyu Technology |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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