Correlation Between Datang International and CN YANGTPWR
Can any of the company-specific risk be diversified away by investing in both Datang International and CN YANGTPWR 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 Datang International and CN YANGTPWR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datang International Power and CN YANGTPWR GDR, you can compare the effects of market volatilities on Datang International and CN YANGTPWR 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 Datang International with a short position of CN YANGTPWR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang International and CN YANGTPWR.
Diversification Opportunities for Datang International and CN YANGTPWR
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Datang and CYZB is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Datang International Power and CN YANGTPWR GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN YANGTPWR GDR and Datang International 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 Datang International Power are associated (or correlated) with CN YANGTPWR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN YANGTPWR GDR has no effect on the direction of Datang International i.e., Datang International and CN YANGTPWR go up and down completely randomly.
Pair Corralation between Datang International and CN YANGTPWR
Assuming the 90 days horizon Datang International is expected to generate 10.06 times less return on investment than CN YANGTPWR. In addition to that, Datang International is 1.25 times more volatile than CN YANGTPWR GDR. It trades about 0.02 of its total potential returns per unit of risk. CN YANGTPWR GDR is currently generating about 0.26 per unit of volatility. If you would invest 3,500 in CN YANGTPWR GDR on November 27, 2024 and sell it today you would earn a total of 700.00 from holding CN YANGTPWR GDR or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang International Power vs. CN YANGTPWR GDR
Performance |
| Timeline |
| Datang International |
| CN YANGTPWR GDR |
Datang International and CN YANGTPWR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang International and CN YANGTPWR
The main advantage of trading using opposite Datang International and CN YANGTPWR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang International position performs unexpectedly, CN YANGTPWR 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 CN YANGTPWR will offset losses from the drop in CN YANGTPWR's long position.| Datang International vs. GUILD ESPORTS PLC | Datang International vs. Columbia Sportswear | Datang International vs. Yuexiu Transport Infrastructure | Datang International vs. Gaztransport et technigaz |
| CN YANGTPWR vs. ON Semiconductor | CN YANGTPWR vs. Tower Semiconductor | CN YANGTPWR vs. MagnaChip Semiconductor Corp | CN YANGTPWR vs. MCEWEN MINING INC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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