Correlation Between Anhui Gujing and Contemporary Amperex
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By analyzing existing cross correlation between Anhui Gujing Distillery and Contemporary Amperex Technology, you can compare the effects of market volatilities on Anhui Gujing and Contemporary Amperex 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 Anhui Gujing with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Contemporary Amperex.
Diversification Opportunities for Anhui Gujing and Contemporary Amperex
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Contemporary is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Anhui Gujing 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 Anhui Gujing Distillery are associated (or correlated) with Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Anhui Gujing and Contemporary Amperex
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Contemporary Amperex. In addition to that, Anhui Gujing is 1.27 times more volatile than Contemporary Amperex Technology. It trades about -0.09 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.07 per unit of volatility. If you would invest 25,624 in Contemporary Amperex Technology on August 28, 2024 and sell it today you would earn a total of 786.00 from holding Contemporary Amperex Technology or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Contemporary Amperex |
Anhui Gujing and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Contemporary Amperex
The main advantage of trading using opposite Anhui Gujing and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Contemporary Amperex 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 Contemporary Amperex will offset losses from the drop in Contemporary Amperex's long position.| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Industrial and Commercial |
| Contemporary Amperex vs. Malion New Materials | Contemporary Amperex vs. Eastern Communications Co | Contemporary Amperex vs. Guangzhou Tinci Materials | Contemporary Amperex vs. Grinm Advanced Materials |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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