Correlation Between Shanghai Xinhua and Contemporary Amperex
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By analyzing existing cross correlation between Shanghai Xinhua Media and Contemporary Amperex Technology, you can compare the effects of market volatilities on Shanghai Xinhua 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 Shanghai Xinhua with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Contemporary Amperex.
Diversification Opportunities for Shanghai Xinhua and Contemporary Amperex
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Contemporary is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Shanghai Xinhua 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 Shanghai Xinhua Media 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 Shanghai Xinhua i.e., Shanghai Xinhua and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Contemporary Amperex
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to under-perform the Contemporary Amperex. In addition to that, Shanghai Xinhua is 2.05 times more volatile than Contemporary Amperex Technology. It trades about -0.02 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.01 per unit of volatility. If you would invest 25,624 in Contemporary Amperex Technology on October 26, 2024 and sell it today you would earn a total of 126.00 from holding Contemporary Amperex Technology or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Contemporary Amperex |
Shanghai Xinhua and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Contemporary Amperex
The main advantage of trading using opposite Shanghai Xinhua and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua 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.| Shanghai Xinhua vs. Bus Online Co | Shanghai Xinhua vs. Holitech Technology Co | Shanghai Xinhua vs. Gome Telecom Equipment | Shanghai Xinhua vs. Cultural Investment Holdings |
| Contemporary Amperex vs. Agricultural Bank of | Contemporary Amperex vs. Industrial Bank Co | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Shanghai Xinhua Media |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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