Correlation Between Shandong Homey and Cambricon Technologies
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By analyzing existing cross correlation between Shandong Homey Aquatic and Cambricon Technologies Corp, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Cambricon Technologies.
Diversification Opportunities for Shandong Homey and Cambricon Technologies
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Cambricon is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Shandong Homey and Cambricon Technologies
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Homey Aquatic is 1.19 times less risky than Cambricon Technologies. The stock trades about -0.37 of its potential returns per unit of risk. The Cambricon Technologies Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 56,800 in Cambricon Technologies Corp on October 14, 2024 and sell it today you would earn a total of 16,197 from holding Cambricon Technologies Corp or generate 28.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Cambricon Technologies |
Shandong Homey and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Cambricon Technologies
The main advantage of trading using opposite Shandong Homey and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. GRG Banking Equipment | Shandong Homey vs. Bank of Suzhou | Shandong Homey vs. Sunny Loan Top |
| Cambricon Technologies vs. Qumei Furniture Group | Cambricon Technologies vs. Shandong Homey Aquatic | Cambricon Technologies vs. Mengtian Home Group | Cambricon Technologies vs. AUPU Home Style |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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