Correlation Between Xiamen Goldenhome and Contemporary Amperex
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Contemporary Amperex.
Diversification Opportunities for Xiamen Goldenhome and Contemporary Amperex
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Contemporary is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Contemporary Amperex
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 0.74 times more return on investment than Contemporary Amperex. However, Xiamen Goldenhome Co is 1.35 times less risky than Contemporary Amperex. It trades about 0.22 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 1,886 in Xiamen Goldenhome Co on November 6, 2024 and sell it today you would earn a total of 108.00 from holding Xiamen Goldenhome Co or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Xiamen Goldenhome |
| Contemporary Amperex |
Xiamen Goldenhome and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Contemporary Amperex
The main advantage of trading using opposite Xiamen Goldenhome and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Air China Ltd | Xiamen Goldenhome vs. Fujian Longzhou Transportation | Xiamen Goldenhome vs. Thunder Software Technology | Xiamen Goldenhome vs. Sichuan Fulin Transportation |
| Contemporary Amperex vs. Chongqing Shunbo Aluminum | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Tianshan Aluminum Group | Contemporary Amperex vs. Epoxy Base Electronic |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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