Correlation Between Cambricon Technologies and Jiangsu Phoenix
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By analyzing existing cross correlation between Cambricon Technologies Corp and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Cambricon Technologies and Jiangsu Phoenix 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 Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Jiangsu Phoenix.
Diversification Opportunities for Cambricon Technologies and Jiangsu Phoenix
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cambricon and Jiangsu is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Jiangsu Phoenix
Assuming the 90 days trading horizon Cambricon Technologies Corp is expected to generate 3.58 times more return on investment than Jiangsu Phoenix. However, Cambricon Technologies is 3.58 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.32 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.1 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambricon Technologies Corp vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Cambricon Technologies |
| Jiangsu Phoenix Publ |
Cambricon Technologies and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambricon Technologies and Jiangsu Phoenix
The main advantage of trading using opposite Cambricon Technologies and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix's long position.The idea behind Cambricon Technologies Corp and Jiangsu Phoenix Publishing 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.
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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