Correlation Between Guangzhou Dongfang and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Cambricon Technologies Corp, you can compare the effects of market volatilities on Guangzhou Dongfang 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 Guangzhou Dongfang with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Cambricon Technologies.
Diversification Opportunities for Guangzhou Dongfang and Cambricon Technologies
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Cambricon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel 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 Guangzhou Dongfang i.e., Guangzhou Dongfang and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Cambricon Technologies
Assuming the 90 days trading horizon Guangzhou Dongfang is expected to generate 10.84 times less return on investment than Cambricon Technologies. But when comparing it to its historical volatility, Guangzhou Dongfang Hotel is 1.66 times less risky than Cambricon Technologies. It trades about 0.01 of its potential returns per unit of risk. Cambricon Technologies Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 22,021 in Cambricon Technologies Corp on September 2, 2024 and sell it today you would earn a total of 34,079 from holding Cambricon Technologies Corp or generate 154.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Cambricon Technologies |
Guangzhou Dongfang and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Cambricon Technologies
The main advantage of trading using opposite Guangzhou Dongfang and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang 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.| Guangzhou Dongfang vs. Cultural Investment Holdings | Guangzhou Dongfang vs. Gome Telecom Equipment | Guangzhou Dongfang vs. Bus Online Co | Guangzhou Dongfang vs. Holitech Technology Co |
| Cambricon Technologies vs. Xinjiang Beixin RoadBridge | Cambricon Technologies vs. Oriental Times Media | Cambricon Technologies vs. Sportsoul Co Ltd | Cambricon Technologies vs. Shaanxi Broadcast TV |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |