Correlation Between China Natural and One Gas
Can any of the company-specific risk be diversified away by investing in both China Natural and One Gas 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 One Gas 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 One Gas, you can compare the effects of market volatilities on China Natural and One Gas 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 One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Natural and One Gas.
Diversification Opportunities for China Natural and One Gas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and One is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Natural Cmn and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas 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 One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of China Natural i.e., China Natural and One Gas go up and down completely randomly.
Pair Corralation between China Natural and One Gas
If you would invest 6,925 in One Gas on November 1, 2024 and sell it today you would earn a total of 83.50 from holding One Gas or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
China Natural Cmn vs. One Gas
Performance |
| Timeline |
| China Natural Cmn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| One Gas |
China Natural and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Natural and One Gas
The main advantage of trading using opposite China Natural and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Natural position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' 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 |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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