Correlation Between Contemporary Amperex and Guangdong Wens
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By analyzing existing cross correlation between Contemporary Amperex Technology and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Contemporary Amperex and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Guangdong Wens.
Diversification Opportunities for Contemporary Amperex and Guangdong Wens
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Guangdong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Guangdong Wens go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Guangdong Wens
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.99 times more return on investment than Guangdong Wens. However, Contemporary Amperex is 1.99 times more volatile than Guangdong Wens Foodstuff. It trades about 0.03 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.06 per unit of risk. If you would invest 25,552 in Contemporary Amperex Technology on November 5, 2024 and sell it today you would earn a total of 148.00 from holding Contemporary Amperex Technology or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Contemporary Amperex |
| Guangdong Wens Foodstuff |
Contemporary Amperex and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Guangdong Wens
The main advantage of trading using opposite Contemporary Amperex and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Contemporary Amperex vs. China Everbright Bank | Contemporary Amperex vs. Runjian Communication Co | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Industrial Bank Co |
| Guangdong Wens vs. Zijin Mining Group | Guangdong Wens vs. Zhejiang Yongjin Metal | Guangdong Wens vs. Xinjiang Baodi Mining | Guangdong Wens vs. Shenyang Huitian Thermal |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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