Correlation Between CN Energy and X Financial
Can any of the company-specific risk be diversified away by investing in both CN Energy and X Financial 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 CN Energy and X Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN Energy Group and X Financial Class, you can compare the effects of market volatilities on CN Energy and X Financial 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 CN Energy with a short position of X Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN Energy and X Financial.
Diversification Opportunities for CN Energy and X Financial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNEY and XYF is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CN Energy Group and X Financial Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Financial Class and CN Energy 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 CN Energy Group are associated (or correlated) with X Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Financial Class has no effect on the direction of CN Energy i.e., CN Energy and X Financial go up and down completely randomly.
Pair Corralation between CN Energy and X Financial
Given the investment horizon of 90 days CN Energy Group is expected to under-perform the X Financial. But the stock apears to be less risky and, when comparing its historical volatility, CN Energy Group is 1.2 times less risky than X Financial. The stock trades about -0.12 of its potential returns per unit of risk. The X Financial Class is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,856 in X Financial Class on June 11, 2025 and sell it today you would lose (412.00) from holding X Financial Class or give up 22.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN Energy Group vs. X Financial Class
Performance |
| Timeline |
| CN Energy Group |
| X Financial Class |
CN Energy and X Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN Energy and X Financial
The main advantage of trading using opposite CN Energy and X Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN Energy position performs unexpectedly, X Financial 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 X Financial will offset losses from the drop in X Financial's long position.| CN Energy vs. Baosheng Media Group | CN Energy vs. Connect Biopharma Holdings | CN Energy vs. Coroware | CN Energy vs. Hudson Technologies |
| X Financial vs. Sentage Holdings | X Financial vs. Yirendai | X Financial vs. Lexinfintech Holdings | X Financial vs. Lufax Holding |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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