Correlation Between Changzhou Evergreen and Cambricon Technologies
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By analyzing existing cross correlation between Changzhou Evergreen Technology and Cambricon Technologies Corp, you can compare the effects of market volatilities on Changzhou Evergreen 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 Changzhou Evergreen with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changzhou Evergreen and Cambricon Technologies.
Diversification Opportunities for Changzhou Evergreen and Cambricon Technologies
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changzhou and Cambricon is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Changzhou Evergreen Technology and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Changzhou Evergreen 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 Changzhou Evergreen Technology 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 Changzhou Evergreen i.e., Changzhou Evergreen and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Changzhou Evergreen and Cambricon Technologies
Assuming the 90 days trading horizon Changzhou Evergreen Technology is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Changzhou Evergreen Technology is 1.56 times less risky than Cambricon Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Cambricon Technologies Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 14,981 in Cambricon Technologies Corp on August 26, 2024 and sell it today you would earn a total of 34,219 from holding Cambricon Technologies Corp or generate 228.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changzhou Evergreen Technology vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Changzhou Evergreen |
| Cambricon Technologies |
Changzhou Evergreen and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changzhou Evergreen and Cambricon Technologies
The main advantage of trading using opposite Changzhou Evergreen and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changzhou Evergreen 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.| Changzhou Evergreen vs. Cambricon Technologies Corp | Changzhou Evergreen vs. Loongson Technology Corp | Changzhou Evergreen vs. Chongqing Road Bridge | Changzhou Evergreen vs. Shenzhen Fortune Trend |
| Cambricon Technologies vs. Dymatic Chemicals | Cambricon Technologies vs. Jiangsu Financial Leasing | Cambricon Technologies vs. Guangzhou Jointas Chemical | Cambricon Technologies vs. Chengtun Mining Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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