Correlation Between Soken Chemical and CGN Power
Can any of the company-specific risk be diversified away by investing in both Soken Chemical and CGN Power 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 Soken Chemical and CGN Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and CGN Power Co, you can compare the effects of market volatilities on Soken Chemical and CGN Power 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 Soken Chemical with a short position of CGN Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and CGN Power.
Diversification Opportunities for Soken Chemical and CGN Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and CGN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and CGN Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Power and Soken Chemical 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 Soken Chemical Engineering are associated (or correlated) with CGN Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Power has no effect on the direction of Soken Chemical i.e., Soken Chemical and CGN Power go up and down completely randomly.
Pair Corralation between Soken Chemical and CGN Power
If you would invest 6.24 in CGN Power Co on November 6, 2024 and sell it today you would earn a total of 21.76 from holding CGN Power Co or generate 348.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Soken Chemical Engineering vs. CGN Power Co
Performance |
| Timeline |
| Soken Chemical Engin |
| CGN Power |
Soken Chemical and CGN Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and CGN Power
The main advantage of trading using opposite Soken Chemical and CGN Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical position performs unexpectedly, CGN Power 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 CGN Power will offset losses from the drop in CGN Power's long position.| Soken Chemical vs. Highlight Communications AG | Soken Chemical vs. Casio Computer CoLtd | Soken Chemical vs. ecotel communication ag | Soken Chemical vs. Rocket Internet SE |
| CGN Power vs. ARDAGH METAL PACDL 0001 | CGN Power vs. PKSHA TECHNOLOGY INC | CGN Power vs. Stag Industrial | CGN Power vs. SWISS WATER DECAFFCOFFEE |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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