Correlation Between Contemporary Amperex and Fuda Alloy
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By analyzing existing cross correlation between Contemporary Amperex Technology and Fuda Alloy Materials, you can compare the effects of market volatilities on Contemporary Amperex and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Fuda Alloy.
Diversification Opportunities for Contemporary Amperex and Fuda Alloy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Fuda is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Fuda Alloy go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Fuda Alloy
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.94 times more return on investment than Fuda Alloy. However, Contemporary Amperex Technology is 1.07 times less risky than Fuda Alloy. It trades about 0.03 of its potential returns per unit of risk. Fuda Alloy Materials is currently generating about 0.01 per unit of risk. If you would invest 22,324 in Contemporary Amperex Technology on September 28, 2024 and sell it today you would earn a total of 3,876 from holding Contemporary Amperex Technology or generate 17.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Fuda Alloy Materials
Performance |
| Timeline |
| Contemporary Amperex |
| Fuda Alloy Materials |
Contemporary Amperex and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Fuda Alloy
The main advantage of trading using opposite Contemporary Amperex and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Contemporary Amperex vs. Hengli Petrochemical Co | Contemporary Amperex vs. Dymatic Chemicals | Contemporary Amperex vs. Sinocat Environmental Technology | Contemporary Amperex vs. Ningbo Bohui Chemical |
| Fuda Alloy vs. Kweichow Moutai Co | Fuda Alloy vs. Contemporary Amperex Technology | Fuda Alloy vs. G bits Network Technology | Fuda Alloy vs. BYD Co Ltd |
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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