Correlation Between Shuhua Sports and Contemporary Amperex
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By analyzing existing cross correlation between Shuhua Sports Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Shuhua Sports 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 Shuhua Sports with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Contemporary Amperex.
Diversification Opportunities for Shuhua Sports and Contemporary Amperex
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Contemporary is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Shuhua Sports 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 Shuhua Sports Co 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 Shuhua Sports i.e., Shuhua Sports and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Shuhua Sports and Contemporary Amperex
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.52 times more return on investment than Contemporary Amperex. However, Shuhua Sports is 1.52 times more volatile than Contemporary Amperex Technology. It trades about 0.07 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.01 per unit of risk. If you would invest 770.00 in Shuhua Sports Co on October 7, 2024 and sell it today you would earn a total of 55.00 from holding Shuhua Sports Co or generate 7.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shuhua Sports Co vs. Contemporary Amperex Technolog
Performance |
Timeline |
Shuhua Sports |
Contemporary Amperex |
Shuhua Sports and Contemporary Amperex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shuhua Sports and Contemporary Amperex
The main advantage of trading using opposite Shuhua Sports and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports 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.Shuhua Sports vs. Holitech Technology Co | Shuhua Sports vs. Zotye Automobile Co | Shuhua Sports vs. Bus Online Co | Shuhua Sports vs. Cultural Investment Holdings |
Contemporary Amperex vs. Linewell Software Co | Contemporary Amperex vs. Sinofibers Technology Co | Contemporary Amperex vs. Northking Information Technology | Contemporary Amperex vs. Tongyu Communication |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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