Correlation Between Contemporary Amperex and Guangxi Wuzhou
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By analyzing existing cross correlation between Contemporary Amperex Technology and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Contemporary Amperex and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Guangxi Wuzhou.
Diversification Opportunities for Contemporary Amperex and Guangxi Wuzhou
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Contemporary and Guangxi is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Guangxi Wuzhou
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.97 times less return on investment than Guangxi Wuzhou. In addition to that, Contemporary Amperex is 1.07 times more volatile than Guangxi Wuzhou Communications. It trades about 0.02 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.03 per unit of volatility. If you would invest 342.00 in Guangxi Wuzhou Communications on October 25, 2024 and sell it today you would earn a total of 98.00 from holding Guangxi Wuzhou Communications or generate 28.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Contemporary Amperex |
| Guangxi Wuzhou Commu |
Contemporary Amperex and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Guangxi Wuzhou
The main advantage of trading using opposite Contemporary Amperex and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Contemporary Amperex vs. Agricultural Bank of | Contemporary Amperex vs. Industrial Bank Co | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Shanghai Xinhua Media |
| Guangxi Wuzhou vs. Zhejiang Yongjin Metal | Guangxi Wuzhou vs. Chinese Universe Publishing | Guangxi Wuzhou vs. Qtone Education Group | Guangxi Wuzhou vs. Shanghai Action Education |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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