Correlation Between Contemporary Amperex and Wuxi Xinhongye
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By analyzing existing cross correlation between Contemporary Amperex Technology and Wuxi Xinhongye Wire, you can compare the effects of market volatilities on Contemporary Amperex and Wuxi Xinhongye 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 Wuxi Xinhongye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Wuxi Xinhongye.
Diversification Opportunities for Contemporary Amperex and Wuxi Xinhongye
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Contemporary and Wuxi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Wuxi Xinhongye Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xinhongye Wire 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 Wuxi Xinhongye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xinhongye Wire has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Wuxi Xinhongye go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Wuxi Xinhongye
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 3.01 times less return on investment than Wuxi Xinhongye. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.91 times less risky than Wuxi Xinhongye. It trades about 0.17 of its potential returns per unit of risk. Wuxi Xinhongye Wire is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,841 in Wuxi Xinhongye Wire on November 28, 2024 and sell it today you would earn a total of 430.00 from holding Wuxi Xinhongye Wire or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Wuxi Xinhongye Wire
Performance |
| Timeline |
| Contemporary Amperex |
| Wuxi Xinhongye Wire |
Contemporary Amperex and Wuxi Xinhongye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Wuxi Xinhongye
The main advantage of trading using opposite Contemporary Amperex and Wuxi Xinhongye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Wuxi Xinhongye 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 Wuxi Xinhongye will offset losses from the drop in Wuxi Xinhongye's long position.| Contemporary Amperex vs. Songz Automobile Air | Contemporary Amperex vs. Vats Liquor Chain | Contemporary Amperex vs. Jiugui Liquor Co | Contemporary Amperex vs. Changchun Engley Automobile |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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