Correlation Between Cambricon Technologies and Shenzhen Centralcon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cambricon Technologies Corp and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Cambricon Technologies and Shenzhen Centralcon 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 Cambricon Technologies with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Shenzhen Centralcon.
Diversification Opportunities for Cambricon Technologies and Shenzhen Centralcon
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cambricon and Shenzhen is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Cambricon Technologies 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 Cambricon Technologies Corp are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Shenzhen Centralcon
Assuming the 90 days trading horizon Cambricon Technologies is expected to generate 1.13 times less return on investment than Shenzhen Centralcon. In addition to that, Cambricon Technologies is 1.76 times more volatile than Shenzhen Centralcon Investment. It trades about 0.36 of its total potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.72 per unit of volatility. If you would invest 487.00 in Shenzhen Centralcon Investment on November 27, 2024 and sell it today you would earn a total of 218.00 from holding Shenzhen Centralcon Investment or generate 44.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambricon Technologies Corp vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Cambricon Technologies |
| Shenzhen Centralcon |
Cambricon Technologies and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambricon Technologies and Shenzhen Centralcon
The main advantage of trading using opposite Cambricon Technologies and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.The idea behind Cambricon Technologies Corp and Shenzhen Centralcon Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shenzhen Centralcon vs. Tianjin Pengling Rubber | Shenzhen Centralcon vs. Innovative Medical Management | Shenzhen Centralcon vs. Jilin OLED Material | Shenzhen Centralcon vs. Nanya New Material |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world |