Correlation Between NURAN WIRELESS and CN YANGTPWR

Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS 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 NURAN WIRELESS and CN YANGTPWR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NURAN WIRELESS INC and CN YANGTPWR GDR, you can compare the effects of market volatilities on NURAN WIRELESS 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 NURAN WIRELESS with a short position of CN YANGTPWR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and CN YANGTPWR.

Diversification Opportunities for NURAN WIRELESS and CN YANGTPWR

0.23

Correlation Coefficient

NURAN WIRELESS  CN YANGTPWR

Modest diversification

The 3 months correlation between NURAN and CYZB is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC 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 NURAN WIRELESS 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 NURAN WIRELESS INC 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 NURAN WIRELESS i.e., NURAN WIRELESS and CN YANGTPWR go up and down completely randomly.

Pair Corralation between NURAN WIRELESS and CN YANGTPWR

Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to under-perform the CN YANGTPWR. But the stock apears to be less risky and, when comparing its historical volatility, NURAN WIRELESS INC is 1.02 times less risky than CN YANGTPWR. The stock trades about -0.09 of its potential returns per unit of risk. The CN YANGTPWR GDR is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  3,380  in CN YANGTPWR GDR on September 27, 2024 and sell it today you would earn a total of  720.00  from holding CN YANGTPWR GDR or generate 21.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

NURAN WIRELESS INC  vs.  CN YANGTPWR GDR

NURAN WIRELESS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NURAN WIRELESS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CN YANGTPWR GDR

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CN YANGTPWR GDR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CN YANGTPWR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NURAN WIRELESS and CN YANGTPWR

The main advantage of trading using opposite NURAN WIRELESS and CN YANGTPWR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS 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.

The idea behind NURAN WIRELESS INC and CN YANGTPWR GDR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.