Correlation Between Beijing Roborock and CNPC Capital

Can any of the company-specific risk be diversified away by investing in both Beijing Roborock and CNPC Capital 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 Beijing Roborock and CNPC Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beijing Roborock Technology and CNPC Capital Co, you can compare the effects of market volatilities on Beijing Roborock and CNPC Capital 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 Beijing Roborock with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and CNPC Capital.

Diversification Opportunities for Beijing Roborock and CNPC Capital

0.0

Correlation Coefficient

Beijing Roborock  CNPC Capital

Pay attention - limited upside

The 3 months correlation between Beijing and CNPC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and Beijing Roborock 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 Beijing Roborock Technology are associated (or correlated) with CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and CNPC Capital go up and down completely randomly.

Pair Corralation between Beijing Roborock and CNPC Capital

If you would invest  0.00  in CNPC Capital Co on October 25, 2024 and sell it today you would earn a total of  0.00  from holding CNPC Capital Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Beijing Roborock Technology  vs.  CNPC Capital Co

Beijing Roborock Tec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beijing Roborock Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

CNPC Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CNPC Capital Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CNPC Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Beijing Roborock and CNPC Capital

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

The idea behind Beijing Roborock Technology and CNPC Capital Co 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.