Correlation Between HeNan Splendor and Cambricon Technologies
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By analyzing existing cross correlation between HeNan Splendor Science and Cambricon Technologies Corp, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Cambricon Technologies.
Diversification Opportunities for HeNan Splendor and Cambricon Technologies
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HeNan and Cambricon is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Cambricon Technologies go up and down completely randomly.
Pair Corralation between HeNan Splendor and Cambricon Technologies
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.68 times more return on investment than Cambricon Technologies. However, HeNan Splendor Science is 1.47 times less risky than Cambricon Technologies. It trades about 0.17 of its potential returns per unit of risk. Cambricon Technologies Corp is currently generating about -0.1 per unit of risk. If you would invest 947.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 101.00 from holding HeNan Splendor Science or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Cambricon Technologies Corp
Performance |
| Timeline |
| HeNan Splendor Science |
| Cambricon Technologies |
HeNan Splendor and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Cambricon Technologies
The main advantage of trading using opposite HeNan Splendor and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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