Correlation Between Mengtian Home and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Mengtian Home Group and Cambricon Technologies Corp, you can compare the effects of market volatilities on Mengtian Home 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 Mengtian Home with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Cambricon Technologies.
Diversification Opportunities for Mengtian Home and Cambricon Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mengtian and Cambricon is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Mengtian Home 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 Mengtian Home Group 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 Mengtian Home i.e., Mengtian Home and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Mengtian Home and Cambricon Technologies
Assuming the 90 days trading horizon Mengtian Home Group is expected to under-perform the Cambricon Technologies. In addition to that, Mengtian Home is 1.08 times more volatile than Cambricon Technologies Corp. It trades about -0.3 of its total potential returns per unit of risk. Cambricon Technologies Corp is currently generating about 0.33 per unit of volatility. 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 |
Mengtian Home Group vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Mengtian Home Group |
| Cambricon Technologies |
Mengtian Home and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Cambricon Technologies
The main advantage of trading using opposite Mengtian Home and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home 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.| Mengtian Home vs. Weichai Heavy Machinery | Mengtian Home vs. Hongrun Construction Group | Mengtian Home vs. Long Yuan Construction | Mengtian Home vs. Guangzhou Haige Communications |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |