Correlation Between Xinhua Winshare and Cambricon Technologies
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Cambricon Technologies Corp, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Cambricon Technologies.
Diversification Opportunities for Xinhua Winshare and Cambricon Technologies
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinhua and Cambricon is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Cambricon Technologies
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 2.3 times less risky than Cambricon Technologies. The stock trades about -0.01 of its potential returns per unit of risk. The Cambricon Technologies Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 22,101 in Cambricon Technologies Corp on August 31, 2024 and sell it today you would earn a total of 32,502 from holding Cambricon Technologies Corp or generate 147.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Cambricon Technologies |
Xinhua Winshare and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Cambricon Technologies
The main advantage of trading using opposite Xinhua Winshare and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. BYD Co Ltd | Xinhua Winshare vs. Agricultural Bank of | Xinhua Winshare vs. Industrial and Commercial | Xinhua Winshare vs. China State Construction |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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