Correlation Between Loongson Technology and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loongson Technology Corp and Cambricon Technologies Corp, you can compare the effects of market volatilities on Loongson Technology and Cambricon Technologies 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 Loongson Technology with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loongson Technology and Cambricon Technologies.
Diversification Opportunities for Loongson Technology and Cambricon Technologies
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loongson and Cambricon is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Loongson Technology Corp and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Loongson Technology 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 Loongson Technology Corp are associated (or correlated) with Cambricon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambricon Technologies has no effect on the direction of Loongson Technology i.e., Loongson Technology and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Loongson Technology and Cambricon Technologies
Assuming the 90 days trading horizon Loongson Technology Corp is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Loongson Technology Corp is 1.48 times less risky than Cambricon Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Cambricon Technologies Corp is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 48,900 in Cambricon Technologies Corp on September 26, 2024 and sell it today you would earn a total of 17,030 from holding Cambricon Technologies Corp or generate 34.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.65% |
Values | Daily Returns |
Loongson Technology Corp vs. Cambricon Technologies Corp
Performance |
Timeline |
Loongson Technology Corp |
Cambricon Technologies |
Loongson Technology and Cambricon Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loongson Technology and Cambricon Technologies
The main advantage of trading using opposite Loongson Technology and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loongson Technology position performs unexpectedly, Cambricon Technologies 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 Cambricon Technologies will offset losses from the drop in Cambricon Technologies' long position.Loongson Technology vs. Ming Yang Smart | Loongson Technology vs. 159681 | Loongson Technology vs. 159005 | Loongson Technology vs. Loctek Ergonomic Technology |
Cambricon Technologies vs. Ming Yang Smart | Cambricon Technologies vs. 159681 | Cambricon Technologies vs. 159005 | Cambricon Technologies vs. Loctek Ergonomic Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |