Correlation Between Cloud Live and Loongson Technology
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By analyzing existing cross correlation between Cloud Live Technology and Loongson Technology Corp, you can compare the effects of market volatilities on Cloud Live and Loongson Technology 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 Cloud Live with a short position of Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Loongson Technology.
Diversification Opportunities for Cloud Live and Loongson Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cloud and Loongson is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp and Cloud Live 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 Cloud Live Technology are associated (or correlated) with Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Cloud Live i.e., Cloud Live and Loongson Technology go up and down completely randomly.
Pair Corralation between Cloud Live and Loongson Technology
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Loongson Technology. In addition to that, Cloud Live is 2.06 times more volatile than Loongson Technology Corp. It trades about -0.37 of its total potential returns per unit of risk. Loongson Technology Corp is currently generating about -0.31 per unit of volatility. If you would invest 14,050 in Loongson Technology Corp on October 28, 2024 and sell it today you would lose (1,987) from holding Loongson Technology Corp or give up 14.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Live Technology vs. Loongson Technology Corp
Performance |
| Timeline |
| Cloud Live Technology |
| Loongson Technology Corp |
Cloud Live and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Loongson Technology
The main advantage of trading using opposite Cloud Live and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Cloud Live vs. Songz Automobile Air | Cloud Live vs. Sinomach Automobile Co | Cloud Live vs. Sihui Fuji Electronics | Cloud Live vs. LianChuang Electronic 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 CEOs Directory module to screen CEOs from public companies around the world.
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