Correlation Between CNPC Capital and Yoantion Industrial
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By analyzing existing cross correlation between CNPC Capital Co and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on CNPC Capital and Yoantion Industrial 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 CNPC Capital with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNPC Capital and Yoantion Industrial.
Diversification Opportunities for CNPC Capital and Yoantion Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNPC and Yoantion is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CNPC Capital Co and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial and CNPC 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 CNPC Capital Co are associated (or correlated) with Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of CNPC Capital i.e., CNPC Capital and Yoantion Industrial go up and down completely randomly.
Pair Corralation between CNPC Capital and Yoantion Industrial
Assuming the 90 days trading horizon CNPC Capital Co is expected to generate 1.18 times more return on investment than Yoantion Industrial. However, CNPC Capital is 1.18 times more volatile than Yoantion Industrial IncLtd. It trades about 0.07 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.06 per unit of risk. If you would invest 615.00 in CNPC Capital Co on September 25, 2024 and sell it today you would earn a total of 93.00 from holding CNPC Capital Co or generate 15.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CNPC Capital Co vs. Yoantion Industrial IncLtd
Performance |
Timeline |
CNPC Capital |
Yoantion Industrial |
CNPC Capital and Yoantion Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNPC Capital and Yoantion Industrial
The main advantage of trading using opposite CNPC Capital and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNPC Capital position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial's long position.CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic Technology |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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