Correlation Between Cambricon Technologies and Tieling Newcity
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By analyzing existing cross correlation between Cambricon Technologies Corp and Tieling Newcity Investment, you can compare the effects of market volatilities on Cambricon Technologies and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambricon Technologies and Tieling Newcity.
Diversification Opportunities for Cambricon Technologies and Tieling Newcity
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cambricon and Tieling is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Cambricon Technologies i.e., Cambricon Technologies and Tieling Newcity go up and down completely randomly.
Pair Corralation between Cambricon Technologies and Tieling Newcity
Assuming the 90 days trading horizon Cambricon Technologies Corp is expected to generate 1.8 times more return on investment than Tieling Newcity. However, Cambricon Technologies is 1.8 times more volatile than Tieling Newcity Investment. It trades about 0.29 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.34 per unit of risk. If you would invest 43,100 in Cambricon Technologies Corp on September 9, 2024 and sell it today you would earn a total of 12,260 from holding Cambricon Technologies Corp or generate 28.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cambricon Technologies Corp vs. Tieling Newcity Investment
Performance |
Timeline |
Cambricon Technologies |
Tieling Newcity Inve |
Cambricon Technologies and Tieling Newcity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cambricon Technologies and Tieling Newcity
The main advantage of trading using opposite Cambricon Technologies and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambricon Technologies position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.Cambricon Technologies vs. Guangzhou Dongfang Hotel | Cambricon Technologies vs. Juneyao Airlines | Cambricon Technologies vs. Masterwork Machinery | Cambricon Technologies vs. Jinling Hotel Corp |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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