Correlation Between Hunan Tyen and Contemporary Amperex
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By analyzing existing cross correlation between Hunan Tyen Machinery and Contemporary Amperex Technology, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Contemporary Amperex.
Diversification Opportunities for Hunan Tyen and Contemporary Amperex
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Contemporary is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Hunan Tyen and Contemporary Amperex
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 1.21 times more return on investment than Contemporary Amperex. However, Hunan Tyen is 1.21 times more volatile than Contemporary Amperex Technology. It trades about 0.02 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.03 per unit of risk. If you would invest 472.00 in Hunan Tyen Machinery on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Hunan Tyen Machinery or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Contemporary Amperex |
Hunan Tyen and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Contemporary Amperex
The main advantage of trading using opposite Hunan Tyen and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. China State Construction | Hunan Tyen vs. Huafa Industrial Co | Hunan Tyen vs. China International Capital | Hunan Tyen vs. Kweichow Moutai 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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