Correlation Between ENN Energy and China Natural
Can any of the company-specific risk be diversified away by investing in both ENN Energy and China Natural 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 ENN Energy and China Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENN Energy Holdings and China Natural Cmn, you can compare the effects of market volatilities on ENN Energy and China Natural 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 ENN Energy with a short position of China Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENN Energy and China Natural.
Diversification Opportunities for ENN Energy and China Natural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ENN and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ENN Energy Holdings and China Natural Cmn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Natural Cmn and ENN Energy 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 ENN Energy Holdings are associated (or correlated) with China Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Natural Cmn has no effect on the direction of ENN Energy i.e., ENN Energy and China Natural go up and down completely randomly.
Pair Corralation between ENN Energy and China Natural
If you would invest (100.00) in China Natural Cmn on November 9, 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 |
ENN Energy Holdings vs. China Natural Cmn
Performance |
| Timeline |
| ENN Energy Holdings |
| China Natural Cmn |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ENN Energy and China Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENN Energy and China Natural
The main advantage of trading using opposite ENN Energy and China Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENN Energy position performs unexpectedly, China Natural 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 China Natural will offset losses from the drop in China Natural's long position.| ENN Energy vs. Beijing Gas Blue | ENN Energy vs. EverGen Infrastructure Corp | ENN Energy vs. OPAL Fuels | ENN Energy vs. APA Group |
| China Natural vs. ENN Energy Holdings | China Natural vs. APA Group | China Natural vs. EverGen Infrastructure Corp | China Natural vs. Beijing Gas Blue |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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