Correlation Between Sunwave Communications and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sunwave Communications Co and Cambricon Technologies Corp, you can compare the effects of market volatilities on Sunwave Communications 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 Sunwave Communications with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Cambricon Technologies.
Diversification Opportunities for Sunwave Communications and Cambricon Technologies
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunwave and Cambricon is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Sunwave Communications 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 Sunwave Communications Co 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 Sunwave Communications i.e., Sunwave Communications and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Sunwave Communications and Cambricon Technologies
Assuming the 90 days trading horizon Sunwave Communications is expected to generate 1.07 times less return on investment than Cambricon Technologies. But when comparing it to its historical volatility, Sunwave Communications Co is 1.24 times less risky than Cambricon Technologies. It trades about 0.23 of its potential returns per unit of risk. Cambricon Technologies Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 44,525 in Cambricon Technologies Corp on August 31, 2024 and sell it today you would earn a total of 10,078 from holding Cambricon Technologies Corp or generate 22.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Sunwave Communications |
| Cambricon Technologies |
Sunwave Communications and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Cambricon Technologies
The main advantage of trading using opposite Sunwave Communications and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications 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.| Sunwave Communications vs. Kweichow Moutai Co | Sunwave Communications vs. NAURA Technology Group | Sunwave Communications vs. APT Medical | Sunwave Communications vs. Contemporary Amperex 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |