Correlation Between Guangdong Tianhe and Contemporary Amperex
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By analyzing existing cross correlation between Guangdong Tianhe Agricultural and Contemporary Amperex Technology, you can compare the effects of market volatilities on Guangdong Tianhe 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 Guangdong Tianhe with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and Contemporary Amperex.
Diversification Opportunities for Guangdong Tianhe and Contemporary Amperex
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Contemporary is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Guangdong Tianhe 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 Guangdong Tianhe Agricultural 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 Guangdong Tianhe i.e., Guangdong Tianhe and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and Contemporary Amperex
Assuming the 90 days trading horizon Guangdong Tianhe Agricultural is expected to generate 0.89 times more return on investment than Contemporary Amperex. However, Guangdong Tianhe Agricultural is 1.12 times less risky than Contemporary Amperex. It trades about 0.18 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.15 per unit of risk. If you would invest 510.00 in Guangdong Tianhe Agricultural on September 23, 2024 and sell it today you would earn a total of 230.00 from holding Guangdong Tianhe Agricultural or generate 45.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Tianhe Agricultural vs. Contemporary Amperex Technolog
Performance |
Timeline |
Guangdong Tianhe Agr |
Contemporary Amperex |
Guangdong Tianhe and Contemporary Amperex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Tianhe and Contemporary Amperex
The main advantage of trading using opposite Guangdong Tianhe and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe 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.Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe vs. Shandong Gold Mining |
Contemporary Amperex vs. Kweichow Moutai Co | Contemporary Amperex vs. G bits Network Technology | Contemporary Amperex vs. BYD Co Ltd | Contemporary Amperex vs. Beijing Roborock Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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