Correlation Between Jointo Energy and Contemporary Amperex
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By analyzing existing cross correlation between Jointo Energy Investment and Contemporary Amperex Technology, you can compare the effects of market volatilities on Jointo Energy 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 Jointo Energy with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Contemporary Amperex.
Diversification Opportunities for Jointo Energy and Contemporary Amperex
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jointo and Contemporary is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Jointo Energy 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 Jointo Energy Investment 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 Jointo Energy i.e., Jointo Energy and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Jointo Energy and Contemporary Amperex
Assuming the 90 days trading horizon Jointo Energy is expected to generate 1.94 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Jointo Energy Investment is 1.3 times less risky than Contemporary Amperex. It trades about 0.14 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 25,700 in Contemporary Amperex Technology on November 27, 2024 and sell it today you would earn a total of 1,450 from holding Contemporary Amperex Technology or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Jointo Energy Investment |
| Contemporary Amperex |
Jointo Energy and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Contemporary Amperex
The main advantage of trading using opposite Jointo Energy and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy 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.| Jointo Energy vs. Ningbo Fangzheng Automobile | Jointo Energy vs. Jiangsu Broadcasting Cable | Jointo Energy vs. CIMC Vehicles Co | Jointo Energy vs. RoadMain T Co |
| Contemporary Amperex vs. Eit Environmental Development | Contemporary Amperex vs. Sinosteel Engineering and | Contemporary Amperex vs. Xiangpiaopiao Food Co | Contemporary Amperex vs. Jiangxi Sunshine Dairy |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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