Correlation Between Tieling Newcity and CGN Nuclear

Can any of the company-specific risk be diversified away by investing in both Tieling Newcity and CGN Nuclear 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 Tieling Newcity and CGN Nuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tieling Newcity Investment and CGN Nuclear Technology, you can compare the effects of market volatilities on Tieling Newcity and CGN Nuclear 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 Tieling Newcity with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and CGN Nuclear.

Diversification Opportunities for Tieling Newcity and CGN Nuclear

-0.23

Correlation Coefficient

Tieling Newcity  CGN Nuclear

Very good diversification

The 3 months correlation between Tieling and CGN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and CGN Nuclear Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Nuclear Technology and Tieling Newcity 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 Tieling Newcity Investment are associated (or correlated) with CGN Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Nuclear Technology has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and CGN Nuclear go up and down completely randomly.

Pair Corralation between Tieling Newcity and CGN Nuclear

Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the CGN Nuclear. In addition to that, Tieling Newcity is 1.63 times more volatile than CGN Nuclear Technology. It trades about -0.09 of its total potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.06 per unit of volatility. If you would invest  689.00  in CGN Nuclear Technology on December 4, 2024 and sell it today you would earn a total of  10.00  from holding CGN Nuclear Technology or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tieling Newcity Investment  vs.  CGN Nuclear Technology

Tieling Newcity Inve

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tieling Newcity Investment are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Tieling Newcity may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CGN Nuclear Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days CGN Nuclear Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Tieling Newcity and CGN Nuclear

The main advantage of trading using opposite Tieling Newcity and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, CGN Nuclear 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 Nuclear will offset losses from the drop in CGN Nuclear's long position.

The idea behind Tieling Newcity Investment and CGN Nuclear Technology 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.