Correlation Between Tonghua Grape and Contemporary Amperex
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tonghua Grape Wine and Contemporary Amperex Technology, you can compare the effects of market volatilities on Tonghua Grape 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 Tonghua Grape with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Contemporary Amperex.
Diversification Opportunities for Tonghua Grape and Contemporary Amperex
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tonghua and Contemporary is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Tonghua Grape 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 Tonghua Grape Wine 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 Tonghua Grape i.e., Tonghua Grape and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Tonghua Grape and Contemporary Amperex
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to generate 1.26 times more return on investment than Contemporary Amperex. However, Tonghua Grape is 1.26 times more volatile than Contemporary Amperex Technology. It trades about 0.14 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.05 per unit of risk. If you would invest 283.00 in Tonghua Grape Wine on September 26, 2024 and sell it today you would earn a total of 20.00 from holding Tonghua Grape Wine or generate 7.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tonghua Grape Wine vs. Contemporary Amperex Technolog
Performance |
Timeline |
Tonghua Grape Wine |
Contemporary Amperex |
Tonghua Grape and Contemporary Amperex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tonghua Grape and Contemporary Amperex
The main advantage of trading using opposite Tonghua Grape and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape 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.Tonghua Grape vs. PetroChina Co Ltd | Tonghua Grape vs. China Mobile Limited | Tonghua Grape vs. CNOOC Limited | Tonghua Grape vs. Ping An Insurance |
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 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Fundamental Analysis View fundamental data based on most recent published financial statements |