Correlation Between CNJ Capital and Asiabasemetals
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Asiabasemetals 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 CNJ Capital and Asiabasemetals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Asiabasemetals, you can compare the effects of market volatilities on CNJ Capital and Asiabasemetals 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 CNJ Capital with a short position of Asiabasemetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Asiabasemetals.
Diversification Opportunities for CNJ Capital and Asiabasemetals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Asiabasemetals is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Asiabasemetals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiabasemetals and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with Asiabasemetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiabasemetals has no effect on the direction of CNJ Capital i.e., CNJ Capital and Asiabasemetals go up and down completely randomly.
Pair Corralation between CNJ Capital and Asiabasemetals
If you would invest 5.50 in Asiabasemetals on October 7, 2024 and sell it today you would earn a total of 2.00 from holding Asiabasemetals or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
CNJ Capital Investments vs. Asiabasemetals
Performance |
| Timeline |
| CNJ Capital Investments |
| Asiabasemetals |
CNJ Capital and Asiabasemetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Asiabasemetals
The main advantage of trading using opposite CNJ Capital and Asiabasemetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Asiabasemetals 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 Asiabasemetals will offset losses from the drop in Asiabasemetals' long position.| CNJ Capital vs. Earth Alive Clean | CNJ Capital vs. Advent Wireless | CNJ Capital vs. Verizon Communications CDR | CNJ Capital vs. Hemisphere Energy |
| Asiabasemetals vs. Rocky Mountain Liquor | Asiabasemetals vs. CNJ Capital Investments | Asiabasemetals vs. Canlan Ice Sports | Asiabasemetals vs. 2028 Investment Grade |
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.
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