Correlation Between CN YANGTPWR and Superior Plus
Can any of the company-specific risk be diversified away by investing in both CN YANGTPWR and Superior Plus 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 CN YANGTPWR and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN YANGTPWR GDR and Superior Plus Corp, you can compare the effects of market volatilities on CN YANGTPWR and Superior Plus 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 CN YANGTPWR with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN YANGTPWR and Superior Plus.
Diversification Opportunities for CN YANGTPWR and Superior Plus
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CYZB and Superior is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CN YANGTPWR GDR and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and CN YANGTPWR 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 CN YANGTPWR GDR are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of CN YANGTPWR i.e., CN YANGTPWR and Superior Plus go up and down completely randomly.
Pair Corralation between CN YANGTPWR and Superior Plus
Assuming the 90 days trading horizon CN YANGTPWR GDR is expected to generate 1.03 times more return on investment than Superior Plus. However, CN YANGTPWR is 1.03 times more volatile than Superior Plus Corp. It trades about 0.04 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.02 per unit of risk. If you would invest 2,590 in CN YANGTPWR GDR on September 1, 2024 and sell it today you would earn a total of 730.00 from holding CN YANGTPWR GDR or generate 28.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
CN YANGTPWR GDR vs. Superior Plus Corp
Performance |
| Timeline |
| CN YANGTPWR GDR |
| Superior Plus Corp |
CN YANGTPWR and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN YANGTPWR and Superior Plus
The main advantage of trading using opposite CN YANGTPWR and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN YANGTPWR position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| CN YANGTPWR vs. Pick n Pay | CN YANGTPWR vs. Clean Energy Fuels | CN YANGTPWR vs. TFS FINANCIAL | CN YANGTPWR vs. QURATE RETAIL INC |
| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| CEOs Directory Screen CEOs from public companies around the world |