Correlation Between Contemporary Amperex and Goldlok Toys
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By analyzing existing cross correlation between Contemporary Amperex Technology and Goldlok Toys Holdings, you can compare the effects of market volatilities on Contemporary Amperex and Goldlok Toys 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 Goldlok Toys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Goldlok Toys.
Diversification Opportunities for Contemporary Amperex and Goldlok Toys
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Goldlok is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Goldlok Toys Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldlok Toys Holdings 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 Goldlok Toys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldlok Toys Holdings has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Goldlok Toys go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Goldlok Toys
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 7.67 times less return on investment than Goldlok Toys. But when comparing it to its historical volatility, Contemporary Amperex Technology is 2.62 times less risky than Goldlok Toys. It trades about 0.07 of its potential returns per unit of risk. Goldlok Toys Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Goldlok Toys Holdings on August 28, 2024 and sell it today you would earn a total of 85.00 from holding Goldlok Toys Holdings or generate 26.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Goldlok Toys Holdings
Performance |
| Timeline |
| Contemporary Amperex |
| Goldlok Toys Holdings |
Contemporary Amperex and Goldlok Toys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Goldlok Toys
The main advantage of trading using opposite Contemporary Amperex and Goldlok Toys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Goldlok Toys 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 Goldlok Toys will offset losses from the drop in Goldlok Toys' long position.The idea behind Contemporary Amperex Technology and Goldlok Toys Holdings 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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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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