Correlation Between Talanx AG and CN YANGTPWR
Can any of the company-specific risk be diversified away by investing in both Talanx AG and CN YANGTPWR 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 Talanx AG and CN YANGTPWR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and CN YANGTPWR GDR, you can compare the effects of market volatilities on Talanx AG and CN YANGTPWR 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 Talanx AG with a short position of CN YANGTPWR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and CN YANGTPWR.
Diversification Opportunities for Talanx AG and CN YANGTPWR
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Talanx and CYZB is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and CN YANGTPWR GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN YANGTPWR GDR and Talanx AG 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 Talanx AG are associated (or correlated) with CN YANGTPWR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN YANGTPWR GDR has no effect on the direction of Talanx AG i.e., Talanx AG and CN YANGTPWR go up and down completely randomly.
Pair Corralation between Talanx AG and CN YANGTPWR
Assuming the 90 days horizon Talanx AG is expected to generate 5.15 times less return on investment than CN YANGTPWR. But when comparing it to its historical volatility, Talanx AG is 5.36 times less risky than CN YANGTPWR. It trades about 0.1 of its potential returns per unit of risk. CN YANGTPWR GDR is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,293 in CN YANGTPWR GDR on November 27, 2024 and sell it today you would earn a total of 907.00 from holding CN YANGTPWR GDR or generate 27.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. CN YANGTPWR GDR
Performance |
| Timeline |
| Talanx AG |
| CN YANGTPWR GDR |
Talanx AG and CN YANGTPWR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and CN YANGTPWR
The main advantage of trading using opposite Talanx AG and CN YANGTPWR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, CN YANGTPWR 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 CN YANGTPWR will offset losses from the drop in CN YANGTPWR's long position.| Talanx AG vs. WESANA HEALTH HOLD | Talanx AG vs. US Foods Holding | Talanx AG vs. COMM HEALTH SYSTEMS | Talanx AG vs. Moneysupermarket Group PLC |
| CN YANGTPWR vs. ON Semiconductor | CN YANGTPWR vs. Tower Semiconductor | CN YANGTPWR vs. MagnaChip Semiconductor Corp | CN YANGTPWR vs. MCEWEN MINING INC |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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