Correlation Between Contemporary Amperex and Zhejiang Yayi
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By analyzing existing cross correlation between Contemporary Amperex Technology and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Contemporary Amperex and Zhejiang Yayi 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 Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Zhejiang Yayi.
Diversification Opportunities for Contemporary Amperex and Zhejiang Yayi
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Zhejiang is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Zhejiang Yayi
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.93 times more return on investment than Zhejiang Yayi. However, Contemporary Amperex Technology is 1.08 times less risky than Zhejiang Yayi. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.03 per unit of risk. If you would invest 24,616 in Contemporary Amperex Technology on August 25, 2024 and sell it today you would earn a total of 1,294 from holding Contemporary Amperex Technology or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Contemporary Amperex |
| Zhejiang Yayi Metal |
Contemporary Amperex and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Zhejiang Yayi
The main advantage of trading using opposite Contemporary Amperex and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Zhejiang Yayi 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 Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Contemporary Amperex vs. Harbin Air Conditioning | Contemporary Amperex vs. Markor International Home | Contemporary Amperex vs. Anhui Huilong Agricultural | Contemporary Amperex vs. Hunan Tyen Machinery |
| Zhejiang Yayi vs. China Petroleum Chemical | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. China State Construction | Zhejiang Yayi vs. China Railway Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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