Correlation Between CGN Power and PATTIES FOODS
Can any of the company-specific risk be diversified away by investing in both CGN Power and PATTIES FOODS 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 PATTIES FOODS 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 PATTIES FOODS , you can compare the effects of market volatilities on CGN Power and PATTIES FOODS 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 PATTIES FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGN Power and PATTIES FOODS.
Diversification Opportunities for CGN Power and PATTIES FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CGN and PATTIES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CGN Power Co and PATTIES FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTIES FOODS 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 PATTIES FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTIES FOODS has no effect on the direction of CGN Power i.e., CGN Power and PATTIES FOODS go up and down completely randomly.
Pair Corralation between CGN Power and PATTIES FOODS
If you would invest 27.00 in PATTIES FOODS on November 9, 2024 and sell it today you would earn a total of 0.00 from holding PATTIES FOODS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CGN Power Co vs. PATTIES FOODS
Performance |
| Timeline |
| CGN Power |
| PATTIES FOODS |
CGN Power and PATTIES FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGN Power and PATTIES FOODS
The main advantage of trading using opposite CGN Power and PATTIES FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGN Power position performs unexpectedly, PATTIES FOODS 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 PATTIES FOODS will offset losses from the drop in PATTIES FOODS's long position.| CGN Power vs. AGNC INVESTMENT | CGN Power vs. Transport International Holdings | CGN Power vs. Broadwind | CGN Power vs. Gaztransport Technigaz SA |
| PATTIES FOODS vs. SOGECLAIR SA INH | PATTIES FOODS vs. AOI Electronics Co | PATTIES FOODS vs. Richardson Electronics | PATTIES FOODS vs. AIR LIQUIDE ADR |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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