Correlation Between Contemporary Amperex and Wintao Communications
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By analyzing existing cross correlation between Contemporary Amperex Technology and Wintao Communications Co, you can compare the effects of market volatilities on Contemporary Amperex and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Wintao Communications.
Diversification Opportunities for Contemporary Amperex and Wintao Communications
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Wintao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Wintao Communications go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Wintao Communications
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.66 times more return on investment than Wintao Communications. However, Contemporary Amperex Technology is 1.51 times less risky than Wintao Communications. It trades about 0.03 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.02 per unit of risk. If you would invest 21,541 in Contemporary Amperex Technology on September 12, 2024 and sell it today you would earn a total of 5,516 from holding Contemporary Amperex Technology or generate 25.61% 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. Wintao Communications Co
Performance |
| Timeline |
| Contemporary Amperex |
| Wintao Communications |
Contemporary Amperex and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Wintao Communications
The main advantage of trading using opposite Contemporary Amperex and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Contemporary Amperex vs. Tengda Construction Group | Contemporary Amperex vs. Air China Ltd | Contemporary Amperex vs. ZYF Lopsking Aluminum | Contemporary Amperex vs. MayAir 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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