Correlation Between Cambricon Technologies and Aluminum Corp
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By analyzing existing cross correlation between Cambricon Technologies Corp and Aluminum Corp of, you can compare the effects of market volatilities on Cambricon Technologies and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Aluminum Corp.
Diversification Opportunities for Cambricon Technologies and Aluminum Corp
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cambricon and Aluminum is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Aluminum Corp go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Aluminum Corp
Assuming the 90 days trading horizon Cambricon Technologies Corp is expected to generate 1.93 times more return on investment than Aluminum Corp. However, Cambricon Technologies is 1.93 times more volatile than Aluminum Corp of. It trades about 0.14 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.02 per unit of risk. If you would invest 17,260 in Cambricon Technologies Corp on November 21, 2024 and sell it today you would earn a total of 45,550 from holding Cambricon Technologies Corp or generate 263.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cambricon Technologies Corp vs. Aluminum Corp of
Performance |
Timeline |
Cambricon Technologies |
Aluminum Corp |
Cambricon Technologies and Aluminum Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cambricon Technologies and Aluminum Corp
The main advantage of trading using opposite Cambricon Technologies and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.Cambricon Technologies vs. Bohai Leasing Co | ||
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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