Correlation Between Cambricon Technologies and Guangzhou Seagull
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By analyzing existing cross correlation between Cambricon Technologies Corp and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Cambricon Technologies and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Guangzhou Seagull.
Diversification Opportunities for Cambricon Technologies and Guangzhou Seagull
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cambricon and Guangzhou is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Guangzhou Seagull
Assuming the 90 days trading horizon Cambricon Technologies Corp is expected to generate 0.97 times more return on investment than Guangzhou Seagull. However, Cambricon Technologies Corp is 1.03 times less risky than Guangzhou Seagull. It trades about 0.33 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.27 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambricon Technologies Corp vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Cambricon Technologies |
| Guangzhou Seagull Kitchen |
Cambricon Technologies and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambricon Technologies and Guangzhou Seagull
The main advantage of trading using opposite Cambricon Technologies and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Cambricon Technologies vs. Qumei Furniture Group | Cambricon Technologies vs. Shandong Homey Aquatic | Cambricon Technologies vs. Mengtian Home Group | Cambricon Technologies vs. AUPU Home Style |
| Guangzhou Seagull vs. Jilin Chemical Fibre | Guangzhou Seagull vs. Sichuan Hebang Biotechnology | Guangzhou Seagull vs. Changchun BCHT Biotechnology | Guangzhou Seagull vs. Dymatic Chemicals |
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.
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