Correlation Between Guangzhou Seagull and Contemporary Amperex
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Contemporary Amperex Technology, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Contemporary Amperex.
Diversification Opportunities for Guangzhou Seagull and Contemporary Amperex
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Contemporary is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Contemporary Amperex
Assuming the 90 days trading horizon Guangzhou Seagull is expected to generate 85.18 times less return on investment than Contemporary Amperex. In addition to that, Guangzhou Seagull is 1.15 times more volatile than Contemporary Amperex Technology. It trades about 0.0 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.1 per unit of volatility. If you would invest 15,376 in Contemporary Amperex Technology on September 20, 2024 and sell it today you would earn a total of 11,765 from holding Contemporary Amperex Technology or generate 76.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Contemporary Amperex Technolog
Performance |
Timeline |
Guangzhou Seagull Kitchen |
Contemporary Amperex |
Guangzhou Seagull and Contemporary Amperex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Seagull and Contemporary Amperex
The main advantage of trading using opposite Guangzhou Seagull and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Shenzhen Mindray Bio Medical | Guangzhou Seagull vs. Jiangsu Pacific Quartz | Guangzhou Seagull vs. G bits Network 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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