Correlation Between CNJ Capital and ExGen Resources

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

By analyzing existing cross correlation between CNJ Capital Investments and ExGen Resources, you can compare the effects of market volatilities on CNJ Capital and ExGen Resources 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 CNJ Capital with a short position of ExGen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and ExGen Resources.

Diversification Opportunities for CNJ Capital and ExGen Resources

0.0

Correlation Coefficient

CNJ Capital  ExGen Resources

Pay attention - limited upside

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

Pair Corralation between CNJ Capital and ExGen Resources

If you would invest  8.00  in ExGen Resources on October 10, 2024 and sell it today you would earn a total of  1.00  from holding ExGen Resources or generate 12.5% return on investment over 90 days.

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

CNJ Capital Investments  vs.  ExGen Resources

CNJ Capital Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CNJ Capital Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CNJ Capital is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ExGen Resources

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ExGen Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, ExGen Resources may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with CNJ Capital and ExGen Resources

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

The idea behind CNJ Capital Investments and ExGen Resources 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 Commodity Directory module to find actively traded commodities issued by global exchanges.