Correlation Between Contemporary Amperex and Shanghai Yanpu
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By analyzing existing cross correlation between Contemporary Amperex Technology and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Contemporary Amperex and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Shanghai Yanpu.
Diversification Opportunities for Contemporary Amperex and Shanghai Yanpu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Shanghai Yanpu
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.99 times more return on investment than Shanghai Yanpu. However, Contemporary Amperex Technology is 1.01 times less risky than Shanghai Yanpu. It trades about 0.1 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.02 per unit of risk. If you would invest 24,616 in Contemporary Amperex Technology on August 25, 2024 and sell it today you would earn a total of 1,294 from holding Contemporary Amperex Technology or generate 5.26% 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. Shanghai Yanpu Metal
Performance |
| Timeline |
| Contemporary Amperex |
| Shanghai Yanpu Metal |
Contemporary Amperex and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Shanghai Yanpu
The main advantage of trading using opposite Contemporary Amperex and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Contemporary Amperex vs. Harbin Air Conditioning | Contemporary Amperex vs. Markor International Home | Contemporary Amperex vs. Anhui Huilong Agricultural | Contemporary Amperex vs. Hunan Tyen Machinery |
| Shanghai Yanpu vs. Xiamen Bank Co | Shanghai Yanpu vs. Qilu Bank Co | Shanghai Yanpu vs. Peoples Insurance of | Shanghai Yanpu vs. GRG Banking Equipment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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