Correlation Between Yuan Longping and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yuan Longping High tech and Cambricon Technologies Corp, you can compare the effects of market volatilities on Yuan Longping 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 Yuan Longping with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Cambricon Technologies.
Diversification Opportunities for Yuan Longping and Cambricon Technologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yuan and Cambricon is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Yuan Longping 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 Yuan Longping High tech 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 Yuan Longping i.e., Yuan Longping and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Yuan Longping and Cambricon Technologies
Assuming the 90 days trading horizon Yuan Longping High tech is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Yuan Longping High tech is 3.06 times less risky than Cambricon Technologies. The stock trades about -0.17 of its potential returns per unit of risk. The Cambricon Technologies Corp is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 42,299 in Cambricon Technologies Corp on September 13, 2024 and sell it today you would earn a total of 12,181 from holding Cambricon Technologies Corp or generate 28.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Yuan Longping High |
| Cambricon Technologies |
Yuan Longping and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Cambricon Technologies
The main advantage of trading using opposite Yuan Longping and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping 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.| Yuan Longping vs. New China Life | Yuan Longping vs. Ming Yang Smart | Yuan Longping vs. 159681 | Yuan Longping vs. 159005 |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges |