Correlation Between AUPU Home and Cambricon Technologies
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By analyzing existing cross correlation between AUPU Home Style and Cambricon Technologies Corp, you can compare the effects of market volatilities on AUPU 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 AUPU Home with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Cambricon Technologies.
Diversification Opportunities for AUPU Home and Cambricon Technologies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUPU and Cambricon is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and AUPU 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Cambricon Technologies go up and down completely randomly.
Pair Corralation between AUPU Home and Cambricon Technologies
Assuming the 90 days trading horizon AUPU Home Style is expected to under-perform the Cambricon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, AUPU Home Style is 2.37 times less risky than Cambricon Technologies. The stock trades about -0.4 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 |
AUPU Home Style vs. Cambricon Technologies Corp
Performance |
| Timeline |
| AUPU Home Style |
| Cambricon Technologies |
AUPU Home and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Cambricon Technologies
The main advantage of trading using opposite AUPU Home and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU 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.| AUPU Home vs. COL Digital Publishing | AUPU Home vs. Markor International Home | AUPU Home vs. Heilongjiang Publishing Media | AUPU Home vs. Northern United Publishing |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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