Correlation Between Contemporary Amperex and Hubei Radio
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By analyzing existing cross correlation between Contemporary Amperex Technology and Hubei Radio and, you can compare the effects of market volatilities on Contemporary Amperex and Hubei Radio 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 Contemporary Amperex with a short position of Hubei Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Hubei Radio.
Diversification Opportunities for Contemporary Amperex and Hubei Radio
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Hubei is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Hubei Radio and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Radio and Contemporary Amperex 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 Contemporary Amperex Technology are associated (or correlated) with Hubei Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Radio has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Hubei Radio go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Hubei Radio
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.24 times more return on investment than Hubei Radio. However, Contemporary Amperex is 1.24 times more volatile than Hubei Radio and. It trades about 0.16 of its potential returns per unit of risk. Hubei Radio and is currently generating about 0.18 per unit of risk. If you would invest 18,935 in Contemporary Amperex Technology on September 12, 2024 and sell it today you would earn a total of 8,122 from holding Contemporary Amperex Technology or generate 42.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Contemporary Amperex Technolog vs. Hubei Radio and
Performance |
Timeline |
Contemporary Amperex |
Hubei Radio |
Contemporary Amperex and Hubei Radio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contemporary Amperex and Hubei Radio
The main advantage of trading using opposite Contemporary Amperex and Hubei Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Hubei Radio 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 Hubei Radio will offset losses from the drop in Hubei Radio's long position.Contemporary Amperex vs. Tengda Construction Group | Contemporary Amperex vs. Air China Ltd | Contemporary Amperex vs. ZYF Lopsking Aluminum | Contemporary Amperex vs. MayAir Technology Co |
Hubei Radio vs. Shanghai Ziyan Foods | Hubei Radio vs. Guangzhou Automobile Group | Hubei Radio vs. Sinomach Automobile Co | Hubei Radio vs. Shandong Huifa Foodstuff |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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