Correlation Between Ningbo Ligong and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Ligong Online and Cambricon Technologies Corp, you can compare the effects of market volatilities on Ningbo Ligong 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 Ningbo Ligong with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Cambricon Technologies.
Diversification Opportunities for Ningbo Ligong and Cambricon Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Cambricon is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Ningbo Ligong 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 Ningbo Ligong Online 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 Ningbo Ligong i.e., Ningbo Ligong and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Cambricon Technologies
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 2.94 times less risky than Cambricon Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Cambricon Technologies Corp is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 41,094 in Cambricon Technologies Corp on September 3, 2024 and sell it today you would earn a total of 15,006 from holding Cambricon Technologies Corp or generate 36.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Ningbo Ligong Online |
| Cambricon Technologies |
Ningbo Ligong and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Cambricon Technologies
The main advantage of trading using opposite Ningbo Ligong and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong 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.| Ningbo Ligong vs. Cultural Investment Holdings | Ningbo Ligong vs. Gome Telecom Equipment | Ningbo Ligong vs. Bus Online Co | Ningbo Ligong vs. Holitech Technology Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |