Correlation Between Zhejiang Huayou and CNPC Capital
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and CNPC Capital Co, you can compare the effects of market volatilities on Zhejiang Huayou 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 Zhejiang Huayou with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and CNPC Capital.
Diversification Opportunities for Zhejiang Huayou and CNPC Capital
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and CNPC is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and Zhejiang Huayou 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 Zhejiang Huayou Cobalt 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 Zhejiang Huayou i.e., Zhejiang Huayou and CNPC Capital go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and CNPC Capital
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to under-perform the CNPC Capital. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Huayou Cobalt is 1.12 times less risky than CNPC Capital. The stock trades about -0.06 of its potential returns per unit of risk. The CNPC Capital Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 574.00 in CNPC Capital Co on October 15, 2024 and sell it today you would earn a total of 62.00 from holding CNPC Capital Co or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. CNPC Capital Co
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| CNPC Capital |
Zhejiang Huayou and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and CNPC Capital
The main advantage of trading using opposite Zhejiang Huayou and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou 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.| Zhejiang Huayou vs. Muyuan Foodstuff Co | Zhejiang Huayou vs. Xiamen Jihong Package | Zhejiang Huayou vs. Shenyang Huitian Thermal | Zhejiang Huayou vs. Dalian Thermal Power |
| CNPC Capital vs. Xinjiang Baodi Mining | CNPC Capital vs. Chengtun Mining Group | CNPC Capital vs. Zoje Resources Investment | CNPC Capital vs. Jointo Energy 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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