Correlation Between Contemporary Amperex and Youyou Foods
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By analyzing existing cross correlation between Contemporary Amperex Technology and Youyou Foods Co, you can compare the effects of market volatilities on Contemporary Amperex and Youyou 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 Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Youyou Foods.
Diversification Opportunities for Contemporary Amperex and Youyou Foods
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Youyou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou 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 Youyou Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Youyou Foods go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Youyou Foods
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.89 times more return on investment than Youyou Foods. However, Contemporary Amperex Technology is 1.13 times less risky than Youyou Foods. It trades about 0.01 of its potential returns per unit of risk. Youyou Foods Co is currently generating about -0.03 per unit of risk. If you would invest 26,075 in Contemporary Amperex Technology on October 28, 2024 and sell it today you would lose (13.00) from holding Contemporary Amperex Technology or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Youyou Foods Co
Performance |
| Timeline |
| Contemporary Amperex |
| Youyou Foods |
Contemporary Amperex and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Youyou Foods
The main advantage of trading using opposite Contemporary Amperex and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Youyou 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 Youyou Foods will offset losses from the drop in Youyou Foods' long position.| Contemporary Amperex vs. Xiamen Goldenhome Co | Contemporary Amperex vs. De Rucci Healthy | Contemporary Amperex vs. Vohringer Home Technology | Contemporary Amperex vs. Mengtian Home Group |
| Youyou Foods vs. Ningbo Construction Co | Youyou Foods vs. Offshore Oil Engineering | Youyou Foods vs. Anhui Huilong Agricultural | Youyou Foods vs. Yuanjie Semiconductor Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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