Correlation Between Nanjing Putian and Cambricon Technologies
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Cambricon Technologies Corp, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Cambricon Technologies.
Diversification Opportunities for Nanjing Putian and Cambricon Technologies
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Cambricon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Nanjing Putian and Cambricon Technologies
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Cambricon Technologies. In addition to that, Nanjing Putian is 1.33 times more volatile than Cambricon Technologies Corp. It trades about -0.1 of its total potential returns per unit of risk. Cambricon Technologies Corp is currently generating about 0.25 per unit of volatility. If you would invest 46,900 in Cambricon Technologies Corp on September 15, 2024 and sell it today you would earn a total of 9,900 from holding Cambricon Technologies Corp or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Nanjing Putian Telec |
| Cambricon Technologies |
Nanjing Putian and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Cambricon Technologies
The main advantage of trading using opposite Nanjing Putian and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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