Correlation Between Contemporary Amperex and Shandong Homey
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By analyzing existing cross correlation between Contemporary Amperex Technology and Shandong Homey Aquatic, you can compare the effects of market volatilities on Contemporary Amperex and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Shandong Homey.
Diversification Opportunities for Contemporary Amperex and Shandong Homey
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Shandong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Shandong Homey go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Shandong Homey
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.19 times more return on investment than Shandong Homey. However, Contemporary Amperex is 1.19 times more volatile than Shandong Homey Aquatic. It trades about 0.03 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.1 per unit of risk. If you would invest 25,552 in Contemporary Amperex Technology on November 6, 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. Shandong Homey Aquatic
Performance |
| Timeline |
| Contemporary Amperex |
| Shandong Homey Aquatic |
Contemporary Amperex and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Shandong Homey
The main advantage of trading using opposite Contemporary Amperex and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Contemporary Amperex vs. Chongqing Shunbo Aluminum | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Tianshan Aluminum Group | Contemporary Amperex vs. Epoxy Base Electronic |
| Shandong Homey vs. Shandong Sinoglory Health | Shandong Homey vs. Goodwill E Health | Shandong Homey vs. Xiandai Investment Co | Shandong Homey vs. Everjoy Health 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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