Correlation Between China Carbon and Nexans SA
Can any of the company-specific risk be diversified away by investing in both China Carbon and Nexans SA 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 China Carbon and Nexans SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Carbon Graphit and Nexans SA, you can compare the effects of market volatilities on China Carbon and Nexans SA 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 China Carbon with a short position of Nexans SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Carbon and Nexans SA.
Diversification Opportunities for China Carbon and Nexans SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Nexans is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Carbon Graphit and Nexans SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexans SA and China Carbon 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 China Carbon Graphit are associated (or correlated) with Nexans SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexans SA has no effect on the direction of China Carbon i.e., China Carbon and Nexans SA go up and down completely randomly.
Pair Corralation between China Carbon and Nexans SA
If you would invest 0.01 in China Carbon Graphit on August 29, 2024 and sell it today you would earn a total of 0.00 from holding China Carbon Graphit or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Carbon Graphit vs. Nexans SA
Performance |
| Timeline |
| China Carbon Graphit |
| Nexans SA |
China Carbon and Nexans SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Carbon and Nexans SA
The main advantage of trading using opposite China Carbon and Nexans SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Carbon position performs unexpectedly, Nexans SA 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 Nexans SA will offset losses from the drop in Nexans SA's long position.| China Carbon vs. FREYR Battery SA | China Carbon vs. nVent Electric PLC | China Carbon vs. Hubbell | China Carbon vs. Advanced Energy Industries |
| Nexans SA vs. Novonix | Nexans SA vs. Novonix Ltd ADR | Nexans SA vs. China Carbon Graphit | Nexans SA vs. Flux Power Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |