Correlation Between Great Sun and Cambricon Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Great Sun Foods Co and Cambricon Technologies Corp, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Cambricon Technologies.
Diversification Opportunities for Great Sun and Cambricon Technologies
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Cambricon is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Great Sun 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 Great Sun Foods Co 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 Great Sun i.e., Great Sun and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Great Sun and Cambricon Technologies
Assuming the 90 days trading horizon Great Sun is expected to generate 6.99 times less return on investment than Cambricon Technologies. But when comparing it to its historical volatility, Great Sun Foods Co is 1.18 times less risky than Cambricon Technologies. It trades about 0.05 of its potential returns per unit of risk. 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Great Sun Foods |
| Cambricon Technologies |
Great Sun and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Cambricon Technologies
The main advantage of trading using opposite Great Sun and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Beijing Wantai Biological | Great Sun vs. Aluminum Corp of | Great Sun vs. COL Digital Publishing | Great Sun vs. Shaanxi Meineng Clean |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |