Correlation Between Contemporary Amperex and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Contemporary Amperex Technology and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Contemporary Amperex and Zhengzhou Qianweiyangchu 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 Contemporary Amperex with a short position of Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Contemporary Amperex and Zhengzhou Qianweiyangchu
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Zhengzhou is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu and Contemporary Amperex 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 Contemporary Amperex Technology are associated (or correlated) with Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.61 times more return on investment than Zhengzhou Qianweiyangchu. However, Contemporary Amperex Technology is 1.64 times less risky than Zhengzhou Qianweiyangchu. It trades about 0.02 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.06 per unit of risk. If you would invest 25,527 in Contemporary Amperex Technology on November 6, 2024 and sell it today you would earn a total of 173.00 from holding Contemporary Amperex Technology or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Contemporary Amperex |
| Zhengzhou Qianweiyangchu |
Contemporary Amperex and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Contemporary Amperex and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Contemporary Amperex vs. Chongqing Shunbo Aluminum | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Tianshan Aluminum Group | Contemporary Amperex vs. Epoxy Base Electronic |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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