Correlation Between Contemporary Amperex and Shenwan Hongyuan
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By analyzing existing cross correlation between Contemporary Amperex Technology and Shenwan Hongyuan Group, you can compare the effects of market volatilities on Contemporary Amperex and Shenwan Hongyuan 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 Shenwan Hongyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Shenwan Hongyuan.
Diversification Opportunities for Contemporary Amperex and Shenwan Hongyuan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Shenwan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Shenwan Hongyuan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwan Hongyuan 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 Shenwan Hongyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwan Hongyuan has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Shenwan Hongyuan go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Shenwan Hongyuan
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to under-perform the Shenwan Hongyuan. In addition to that, Contemporary Amperex is 1.74 times more volatile than Shenwan Hongyuan Group. It trades about 0.0 of its total potential returns per unit of risk. Shenwan Hongyuan Group is currently generating about 0.14 per unit of volatility. If you would invest 525.00 in Shenwan Hongyuan Group on September 24, 2024 and sell it today you would earn a total of 16.00 from holding Shenwan Hongyuan Group or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Contemporary Amperex Technolog vs. Shenwan Hongyuan Group
Performance |
Timeline |
Contemporary Amperex |
Shenwan Hongyuan |
Contemporary Amperex and Shenwan Hongyuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contemporary Amperex and Shenwan Hongyuan
The main advantage of trading using opposite Contemporary Amperex and Shenwan Hongyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Shenwan Hongyuan 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 Shenwan Hongyuan will offset losses from the drop in Shenwan Hongyuan's long position.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 |
Shenwan Hongyuan vs. Kweichow Moutai Co | Shenwan Hongyuan vs. Contemporary Amperex Technology | Shenwan Hongyuan vs. G bits Network Technology | Shenwan Hongyuan vs. BYD Co Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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