Correlation Between CGN Power and VPower Group
Can any of the company-specific risk be diversified away by investing in both CGN Power and VPower Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CGN Power and VPower Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGN Power Co and VPower Group International, you can compare the effects of market volatilities on CGN Power and VPower Group 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 CGN Power with a short position of VPower Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Power and VPower Group.
Diversification Opportunities for CGN Power and VPower Group
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CGN and VPower is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding CGN Power Co and VPower Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VPower Group Interna and CGN Power 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 CGN Power Co are associated (or correlated) with VPower Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VPower Group Interna has no effect on the direction of CGN Power i.e., CGN Power and VPower Group go up and down completely randomly.
Pair Corralation between CGN Power and VPower Group
If you would invest 1.40 in VPower Group International on September 22, 2024 and sell it today you would lose (0.20) from holding VPower Group International or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGN Power Co vs. VPower Group International
Performance |
| Timeline |
| CGN Power |
| VPower Group Interna |
CGN Power and VPower Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Power and VPower Group
The main advantage of trading using opposite CGN Power and VPower Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Power position performs unexpectedly, VPower Group 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 VPower Group will offset losses from the drop in VPower Group's long position.| CGN Power vs. Superior Plus Corp | CGN Power vs. SIVERS SEMICONDUCTORS AB | CGN Power vs. Norsk Hydro ASA | CGN Power vs. Reliance Steel Aluminum |
| VPower Group vs. CARSALESCOM | VPower Group vs. Cars Inc | VPower Group vs. DICKER DATA LTD | VPower Group vs. Automatic Data Processing |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |