Correlation Between Suzhou Douson and Contemporary Amperex
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By analyzing existing cross correlation between Suzhou Douson Drilling and Contemporary Amperex Technology, you can compare the effects of market volatilities on Suzhou Douson 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 Suzhou Douson with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Contemporary Amperex.
Diversification Opportunities for Suzhou Douson and Contemporary Amperex
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Contemporary is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Suzhou Douson 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 Suzhou Douson Drilling 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 Suzhou Douson i.e., Suzhou Douson and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Suzhou Douson and Contemporary Amperex
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 1.89 times more return on investment than Contemporary Amperex. However, Suzhou Douson is 1.89 times more volatile than Contemporary Amperex Technology. It trades about 0.12 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about -0.16 per unit of risk. If you would invest 2,520 in Suzhou Douson Drilling on October 17, 2024 and sell it today you would earn a total of 206.00 from holding Suzhou Douson Drilling or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Contemporary Amperex |
Suzhou Douson and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Contemporary Amperex
The main advantage of trading using opposite Suzhou Douson and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson 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.| Suzhou Douson vs. Xiangyang Automobile Bearing | Suzhou Douson vs. Shanghai Rightongene Biotechnology | Suzhou Douson vs. Kingclean Electric Co | Suzhou Douson vs. Shaanxi Meineng Clean |
| Contemporary Amperex vs. Nantong Haixing Electronics | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Anhui Shiny Electronic | Contemporary Amperex vs. Yangmei Chemical 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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