Correlation Between China Securities and Cambricon Technologies
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By analyzing existing cross correlation between China Securities 800 and Cambricon Technologies Corp, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Cambricon Technologies.
Diversification Opportunities for China Securities and Cambricon Technologies
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Cambricon is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Cambricon Technologies go up and down completely randomly.
Pair Corralation between China Securities and Cambricon Technologies
Assuming the 90 days trading horizon China Securities is expected to generate 32.55 times less return on investment than Cambricon Technologies. But when comparing it to its historical volatility, China Securities 800 is 3.98 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 22,101 in Cambricon Technologies Corp on August 31, 2024 and sell it today you would earn a total of 32,502 from holding Cambricon Technologies Corp or generate 147.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
China Securities 800 vs. Cambricon Technologies Corp
Performance |
| Timeline |
China Securities and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Cambricon Technologies Corp
Pair trading matchups for Cambricon Technologies
Pair Trading with China Securities and Cambricon Technologies
The main advantage of trading using opposite China Securities and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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