Correlation Between China Natural and OPAL Fuels
Can any of the company-specific risk be diversified away by investing in both China Natural and OPAL Fuels 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 OPAL Fuels 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 OPAL Fuels, you can compare the effects of market volatilities on China Natural and OPAL Fuels 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 OPAL Fuels. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Natural and OPAL Fuels.
Diversification Opportunities for China Natural and OPAL Fuels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and OPAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Natural Cmn and OPAL Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPAL Fuels 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 OPAL Fuels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPAL Fuels has no effect on the direction of China Natural i.e., China Natural and OPAL Fuels go up and down completely randomly.
Pair Corralation between China Natural and OPAL Fuels
If you would invest (100.00) in China Natural Cmn on November 8, 2024 and sell it today you would earn a total of 100.00 from holding China Natural Cmn or generate -100.0% 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. OPAL Fuels
Performance |
| Timeline |
| China Natural Cmn |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| OPAL Fuels |
China Natural and OPAL Fuels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Natural and OPAL Fuels
The main advantage of trading using opposite China Natural and OPAL Fuels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Natural position performs unexpectedly, OPAL Fuels 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 OPAL Fuels will offset losses from the drop in OPAL Fuels' 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 |
| OPAL Fuels vs. Northwest Natural Gas | OPAL Fuels vs. Chesapeake Utilities | OPAL Fuels vs. One Gas | OPAL Fuels vs. NewJersey 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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