Correlation Between Wuhan Yangtze and Contemporary Amperex
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Contemporary Amperex Technology, you can compare the effects of market volatilities on Wuhan Yangtze and Contemporary Amperex 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 Wuhan Yangtze with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Contemporary Amperex.
Diversification Opportunities for Wuhan Yangtze and Contemporary Amperex
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Contemporary is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Contemporary Amperex
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.38 times more return on investment than Contemporary Amperex. However, Wuhan Yangtze is 1.38 times more volatile than Contemporary Amperex Technology. It trades about 0.03 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.01 per unit of risk. If you would invest 1,676 in Wuhan Yangtze Communication on October 11, 2024 and sell it today you would earn a total of 453.00 from holding Wuhan Yangtze Communication or generate 27.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Contemporary Amperex |
Wuhan Yangtze and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Contemporary Amperex
The main advantage of trading using opposite Wuhan Yangtze and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Contemporary Amperex 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 Contemporary Amperex will offset losses from the drop in Contemporary Amperex's long position.| Wuhan Yangtze vs. Allwin Telecommunication Co | Wuhan Yangtze vs. Telling Telecommunication Holding | Wuhan Yangtze vs. Easyhome New Retail | Wuhan Yangtze vs. SUNSEA Telecommunications Co |
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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