Correlation Between Bank Central and Ambarella
Can any of the company-specific risk be diversified away by investing in both Bank Central and Ambarella 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 Bank Central and Ambarella into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Ambarella, you can compare the effects of market volatilities on Bank Central and Ambarella 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 Bank Central with a short position of Ambarella. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Ambarella.
Diversification Opportunities for Bank Central and Ambarella
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Ambarella is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Ambarella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambarella and Bank Central 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 Bank Central Asia are associated (or correlated) with Ambarella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambarella has no effect on the direction of Bank Central i.e., Bank Central and Ambarella go up and down completely randomly.
Pair Corralation between Bank Central and Ambarella
Assuming the 90 days horizon Bank Central Asia is expected to under-perform the Ambarella. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 2.26 times less risky than Ambarella. The pink sheet trades about -0.14 of its potential returns per unit of risk. The Ambarella is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,938 in Ambarella on July 18, 2025 and sell it today you would earn a total of 1,471 from holding Ambarella or generate 21.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. Ambarella
Performance |
| Timeline |
| Bank Central Asia |
| Ambarella |
Bank Central and Ambarella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Ambarella
The main advantage of trading using opposite Bank Central and Ambarella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Ambarella 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 Ambarella will offset losses from the drop in Ambarella's long position.| Bank Central vs. Bank Rakyat | Bank Central vs. China Merchants Bank | Bank Central vs. Eurobank Ergasias Services | Bank Central vs. Nedbank Group |
| Ambarella vs. Axcelis Technologies | Ambarella vs. Kulicke and Soffa | Ambarella vs. Ultra Clean Holdings | Ambarella vs. Cohu Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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