Correlation Between Contemporary Amperex and Zhejiang Huatong
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By analyzing existing cross correlation between Contemporary Amperex Technology and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Contemporary Amperex and Zhejiang Huatong 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 Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Zhejiang Huatong.
Diversification Opportunities for Contemporary Amperex and Zhejiang Huatong
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Zhejiang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Zhejiang Huatong
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 3.7 times less return on investment than Zhejiang Huatong. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.0 times less risky than Zhejiang Huatong. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,114 in Zhejiang Huatong Meat on November 6, 2024 and sell it today you would earn a total of 35.00 from holding Zhejiang Huatong Meat or generate 3.14% 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. Zhejiang Huatong Meat
Performance |
| Timeline |
| Contemporary Amperex |
| Zhejiang Huatong Meat |
Contemporary Amperex and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Zhejiang Huatong
The main advantage of trading using opposite Contemporary Amperex and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong'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 |
| Zhejiang Huatong vs. FSPG Hi Tech Co | Zhejiang Huatong vs. TianJin 712 Communication | Zhejiang Huatong vs. China Satellite Communications | Zhejiang Huatong vs. Smartgiant Technology Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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