Correlation Between CN YANGTPWR and Datang International
Can any of the company-specific risk be diversified away by investing in both CN YANGTPWR and Datang International 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 YANGTPWR and Datang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN YANGTPWR GDR and Datang International Power, you can compare the effects of market volatilities on CN YANGTPWR and Datang International 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 YANGTPWR with a short position of Datang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN YANGTPWR and Datang International.
Diversification Opportunities for CN YANGTPWR and Datang International
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CYZB and Datang is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CN YANGTPWR GDR and Datang International Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang International and CN YANGTPWR 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 YANGTPWR GDR are associated (or correlated) with Datang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang International has no effect on the direction of CN YANGTPWR i.e., CN YANGTPWR and Datang International go up and down completely randomly.
Pair Corralation between CN YANGTPWR and Datang International
Assuming the 90 days trading horizon CN YANGTPWR GDR is expected to under-perform the Datang International. But the stock apears to be less risky and, when comparing its historical volatility, CN YANGTPWR GDR is 3.33 times less risky than Datang International. The stock trades about 0.0 of its potential returns per unit of risk. The Datang International Power is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Datang International Power on August 7, 2025 and sell it today you would earn a total of 3.00 from holding Datang International Power or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN YANGTPWR GDR vs. Datang International Power
Performance |
| Timeline |
| CN YANGTPWR GDR |
| Datang International |
CN YANGTPWR and Datang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN YANGTPWR and Datang International
The main advantage of trading using opposite CN YANGTPWR and Datang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN YANGTPWR position performs unexpectedly, Datang International 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 Datang International will offset losses from the drop in Datang International's long position.| CN YANGTPWR vs. Siemens Energy AG | CN YANGTPWR vs. Vistra Corp | CN YANGTPWR vs. CENTRICA ADR NEW | CN YANGTPWR vs. Contact Energy Limited |
| Datang International vs. Coeur Mining | Datang International vs. DEVRY EDUCATION GRP | Datang International vs. Strategic Education | Datang International vs. Adtalem Global Education |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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