Correlation Between China Natural and NewJersey Resources
Can any of the company-specific risk be diversified away by investing in both China Natural and NewJersey Resources 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 Natural and NewJersey Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Natural Cmn and NewJersey Resources, you can compare the effects of market volatilities on China Natural and NewJersey Resources 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 Natural with a short position of NewJersey Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Natural and NewJersey Resources.
Diversification Opportunities for China Natural and NewJersey Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and NewJersey is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Natural Cmn and NewJersey Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewJersey Resources and China Natural 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 Natural Cmn are associated (or correlated) with NewJersey Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewJersey Resources has no effect on the direction of China Natural i.e., China Natural and NewJersey Resources go up and down completely randomly.
Pair Corralation between China Natural and NewJersey Resources
If you would invest 4,669 in NewJersey Resources on November 24, 2024 and sell it today you would earn a total of 21.00 from holding NewJersey Resources or generate 0.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Natural Cmn vs. NewJersey Resources
Performance |
Timeline |
China Natural Cmn |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
NewJersey Resources |
China Natural and NewJersey Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Natural and NewJersey Resources
The main advantage of trading using opposite China Natural and NewJersey Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Natural position performs unexpectedly, NewJersey Resources 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 NewJersey Resources will offset losses from the drop in NewJersey Resources' long position.China Natural vs. ENN Energy Holdings | ||
China Natural vs. APA Group | ||
China Natural vs. EverGen Infrastructure Corp | ||
China Natural vs. Beijing Gas Blue |
NewJersey Resources vs. Atmos Energy | ||
NewJersey Resources vs. UGI Corporation | ||
NewJersey Resources vs. Chesapeake Utilities | ||
NewJersey Resources vs. Spire 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |