Correlation Between Contemporary Amperex and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Contemporary Amperex Technology and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Contemporary Amperex and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Fiberhome Telecommunicatio.
Diversification Opportunities for Contemporary Amperex and Fiberhome Telecommunicatio
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Fiberhome is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.93 times more return on investment than Fiberhome Telecommunicatio. However, Contemporary Amperex Technology is 1.08 times less risky than Fiberhome Telecommunicatio. It trades about 0.12 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.0 per unit of risk. If you would invest 24,620 in Contemporary Amperex Technology on September 2, 2024 and sell it today you would earn a total of 1,504 from holding Contemporary Amperex Technology or generate 6.11% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Contemporary Amperex |
| Fiberhome Telecommunicatio |
Contemporary Amperex and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Fiberhome Telecommunicatio
The main advantage of trading using opposite Contemporary Amperex and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Contemporary Amperex vs. Sunwave Communications Co | Contemporary Amperex vs. Yunnan Jianzhijia Health Chain | Contemporary Amperex vs. Fujian Newland Computer | Contemporary Amperex vs. Anhui Huaren Health |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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