Correlation Between Cambricon Technologies and Changsha Jingjia
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By analyzing existing cross correlation between Cambricon Technologies Corp and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Cambricon Technologies and Changsha Jingjia 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 Cambricon Technologies with a short position of Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Changsha Jingjia.
Diversification Opportunities for Cambricon Technologies and Changsha Jingjia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cambricon and Changsha is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic and Cambricon Technologies 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 Cambricon Technologies Corp are associated (or correlated) with Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Changsha Jingjia
Assuming the 90 days trading horizon Cambricon Technologies Corp is expected to generate 1.07 times more return on investment than Changsha Jingjia. However, Cambricon Technologies is 1.07 times more volatile than Changsha Jingjia Microelectronics. It trades about 0.32 of its potential returns per unit of risk. Changsha Jingjia Microelectronics is currently generating about 0.2 per unit of risk. If you would invest 22,400 in Cambricon Technologies Corp on September 26, 2024 and sell it today you would earn a total of 43,530 from holding Cambricon Technologies Corp or generate 194.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Cambricon Technologies Corp vs. Changsha Jingjia Microelectron
Performance |
Timeline |
Cambricon Technologies |
Changsha Jingjia Mic |
Cambricon Technologies and Changsha Jingjia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cambricon Technologies and Changsha Jingjia
The main advantage of trading using opposite Cambricon Technologies and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.Cambricon Technologies vs. Ming Yang Smart | Cambricon Technologies vs. 159681 | Cambricon Technologies vs. 159005 | Cambricon Technologies vs. Loctek Ergonomic Technology |
Changsha Jingjia vs. Ming Yang Smart | Changsha Jingjia vs. 159681 | Changsha Jingjia vs. 159005 | Changsha Jingjia 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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