Correlation Between Suzhou Xingye and Contemporary Amperex
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By analyzing existing cross correlation between Suzhou Xingye Material and Contemporary Amperex Technology, you can compare the effects of market volatilities on Suzhou Xingye 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 Xingye with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Contemporary Amperex.
Diversification Opportunities for Suzhou Xingye and Contemporary Amperex
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Contemporary is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material 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 Xingye 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 Xingye Material 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 Xingye i.e., Suzhou Xingye and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Contemporary Amperex
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 1.13 times more return on investment than Contemporary Amperex. However, Suzhou Xingye is 1.13 times more volatile than Contemporary Amperex Technology. It trades about -0.01 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about -0.04 per unit of risk. If you would invest 933.00 in Suzhou Xingye Material on September 22, 2024 and sell it today you would lose (8.00) from holding Suzhou Xingye Material or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Suzhou Xingye Material vs. Contemporary Amperex Technolog
Performance |
Timeline |
Suzhou Xingye Material |
Contemporary Amperex |
Suzhou Xingye and Contemporary Amperex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Xingye and Contemporary Amperex
The main advantage of trading using opposite Suzhou Xingye and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye 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 Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
Contemporary Amperex vs. Northking Information Technology | Contemporary Amperex vs. Xiangyu Medical Co | Contemporary Amperex vs. Dongguan Aohai Technology | Contemporary Amperex vs. Cowealth Medical China |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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