Correlation Between CGA Old and Puda Coal
Can any of the company-specific risk be diversified away by investing in both CGA Old and Puda Coal 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 CGA Old and Puda Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGA Old and Puda Coal New, you can compare the effects of market volatilities on CGA Old and Puda Coal 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 CGA Old with a short position of Puda Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGA Old and Puda Coal.
Diversification Opportunities for CGA Old and Puda Coal
Pay attention - limited upside
The 3 months correlation between CGA and Puda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CGA Old and Puda Coal New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puda Coal New and CGA Old 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 CGA Old are associated (or correlated) with Puda Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puda Coal New has no effect on the direction of CGA Old i.e., CGA Old and Puda Coal go up and down completely randomly.
Pair Corralation between CGA Old and Puda Coal
If you would invest (100.00) in Puda Coal New on December 16, 2024 and sell it today you would earn a total of 100.00 from holding Puda Coal New or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CGA Old vs. Puda Coal New
Performance |
Timeline |
CGA Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Puda Coal New |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CGA Old and Puda Coal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CGA Old and Puda Coal
The main advantage of trading using opposite CGA Old and Puda Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGA Old position performs unexpectedly, Puda Coal 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 Puda Coal will offset losses from the drop in Puda Coal's long position.CGA Old vs. KS AG DRC | CGA Old vs. Intrepid Potash | CGA Old vs. Bioceres Crop Solutions | CGA Old vs. American Vanguard |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |