Correlation Between Huayi Brothers and Contemporary Amperex
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By analyzing existing cross correlation between Huayi Brothers Media and Contemporary Amperex Technology, you can compare the effects of market volatilities on Huayi Brothers 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 Huayi Brothers with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huayi Brothers and Contemporary Amperex.
Diversification Opportunities for Huayi Brothers and Contemporary Amperex
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huayi and Contemporary is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Huayi Brothers Media and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Huayi Brothers 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 Huayi Brothers Media 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 Huayi Brothers i.e., Huayi Brothers and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Huayi Brothers and Contemporary Amperex
Assuming the 90 days trading horizon Huayi Brothers Media is expected to under-perform the Contemporary Amperex. In addition to that, Huayi Brothers is 1.79 times more volatile than Contemporary Amperex Technology. It trades about -0.7 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about -0.32 per unit of volatility. If you would invest 27,371 in Contemporary Amperex Technology on October 13, 2024 and sell it today you would lose (2,771) from holding Contemporary Amperex Technology or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huayi Brothers Media vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Huayi Brothers Media |
| Contemporary Amperex |
Huayi Brothers and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huayi Brothers and Contemporary Amperex
The main advantage of trading using opposite Huayi Brothers and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huayi Brothers 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.| Huayi Brothers vs. Kweichow Moutai Co | Huayi Brothers vs. Contemporary Amperex Technology | Huayi Brothers vs. G bits Network Technology | Huayi Brothers vs. Beijing Roborock Technology |
| Contemporary Amperex vs. Sportsoul Co Ltd | Contemporary Amperex vs. Huayi Brothers Media | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Changjiang Publishing Media |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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