Correlation Between Cambricon Technologies and Nancal Energy
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By analyzing existing cross correlation between Cambricon Technologies Corp and Nancal Energy Saving Tech, you can compare the effects of market volatilities on Cambricon Technologies and Nancal Energy 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 Nancal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Nancal Energy.
Diversification Opportunities for Cambricon Technologies and Nancal Energy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cambricon and Nancal is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Nancal Energy Saving Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nancal Energy Saving 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 Nancal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nancal Energy Saving has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Nancal Energy go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Nancal Energy
Assuming the 90 days trading horizon Cambricon Technologies is expected to generate 1.77 times less return on investment than Nancal Energy. But when comparing it to its historical volatility, Cambricon Technologies Corp is 1.24 times less risky than Nancal Energy. It trades about 0.2 of its potential returns per unit of risk. Nancal Energy Saving Tech is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,058 in Nancal Energy Saving Tech on September 1, 2024 and sell it today you would earn a total of 911.00 from holding Nancal Energy Saving Tech or generate 44.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cambricon Technologies Corp vs. Nancal Energy Saving Tech
Performance |
| Timeline |
| Cambricon Technologies |
| Nancal Energy Saving |
Cambricon Technologies and Nancal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambricon Technologies and Nancal Energy
The main advantage of trading using opposite Cambricon Technologies and Nancal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Nancal Energy 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 Nancal Energy will offset losses from the drop in Nancal Energy's long position.| Cambricon Technologies vs. Ningbo Ligong Online | Cambricon Technologies vs. Great Sun Foods Co | Cambricon Technologies vs. Lander Sports Development | Cambricon Technologies vs. Hainan Haiqi Transportation |
| Nancal Energy vs. Cultural Investment Holdings | Nancal Energy vs. Gome Telecom Equipment | Nancal Energy vs. Bus Online Co | Nancal Energy vs. Holitech Technology Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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