Correlation Between Contemporary Amperex and Great-Sun Foods
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By analyzing existing cross correlation between Contemporary Amperex Technology and Great Sun Foods Co, you can compare the effects of market volatilities on Contemporary Amperex and Great-Sun Foods 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 Great-Sun Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Great-Sun Foods.
Diversification Opportunities for Contemporary Amperex and Great-Sun Foods
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Contemporary and Great-Sun is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great-Sun Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Great-Sun Foods go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Great-Sun Foods
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 11.25 times less return on investment than Great-Sun Foods. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.45 times less risky than Great-Sun Foods. It trades about 0.03 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Great Sun Foods Co on November 5, 2024 and sell it today you would earn a total of 41.00 from holding Great Sun Foods Co or generate 10.25% 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. Great Sun Foods Co
Performance |
| Timeline |
| Contemporary Amperex |
| Great Sun Foods |
Contemporary Amperex and Great-Sun Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Great-Sun Foods
The main advantage of trading using opposite Contemporary Amperex and Great-Sun Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Great-Sun Foods 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 Great-Sun Foods will offset losses from the drop in Great-Sun Foods' long position.| Contemporary Amperex vs. China Everbright Bank | Contemporary Amperex vs. Runjian Communication Co | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Industrial Bank Co |
| Great-Sun Foods vs. China Longyuan Power | Great-Sun Foods vs. PetroChina Co Ltd | Great-Sun Foods vs. Guangxi Guiguan Electric | Great-Sun Foods vs. Yantai North Andre |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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