Correlation Between Cirmaker Technology and BingEx

Can any of the company-specific risk be diversified away by investing in both Cirmaker Technology and BingEx at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cirmaker Technology and BingEx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cirmaker Technology and BingEx, you can compare the effects of market volatilities on Cirmaker Technology and BingEx 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 Cirmaker Technology with a short position of BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirmaker Technology and BingEx.

Diversification Opportunities for Cirmaker Technology and BingEx

0.45

Correlation Coefficient

Cirmaker Technology  BingEx

Very weak diversification

The 3 months correlation between Cirmaker and BingEx is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx and Cirmaker Technology 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 Cirmaker Technology are associated (or correlated) with BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of Cirmaker Technology i.e., Cirmaker Technology and BingEx go up and down completely randomly.

Pair Corralation between Cirmaker Technology and BingEx

Given the investment horizon of 90 days Cirmaker Technology is expected to generate 7.39 times more return on investment than BingEx. However, Cirmaker Technology is 7.39 times more volatile than BingEx. It trades about 0.03 of its potential returns per unit of risk. BingEx is currently generating about -0.14 per unit of risk. If you would invest  3.30  in Cirmaker Technology on October 11, 2024 and sell it today you would earn a total of  2.10  from holding Cirmaker Technology or generate 63.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	13.71%
Values	Daily Returns

Cirmaker Technology  vs.  BingEx

Cirmaker Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cirmaker Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Cirmaker Technology is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

BingEx

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BingEx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cirmaker Technology and BingEx

The main advantage of trading using opposite Cirmaker Technology and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirmaker Technology position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.

The idea behind Cirmaker Technology and BingEx 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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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.