Correlation Between Bus Online and Contemporary Amperex
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By analyzing existing cross correlation between Bus Online Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Bus Online 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 Bus Online with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Contemporary Amperex.
Diversification Opportunities for Bus Online and Contemporary Amperex
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Contemporary is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online 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 Bus Online 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 Bus Online 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 Bus Online i.e., Bus Online and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Bus Online and Contemporary Amperex
Assuming the 90 days trading horizon Bus Online is expected to generate 1.88 times less return on investment than Contemporary Amperex. In addition to that, Bus Online is 1.12 times more volatile than Contemporary Amperex Technology. It trades about 0.03 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.07 per unit of volatility. If you would invest 20,698 in Contemporary Amperex Technology on September 3, 2024 and sell it today you would earn a total of 5,426 from holding Contemporary Amperex Technology or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Bus Online |
| Contemporary Amperex |
Bus Online and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Contemporary Amperex
The main advantage of trading using opposite Bus Online and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online 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.| Bus Online vs. Anhui Transport Consulting | Bus Online vs. Sino Platinum Metals Co | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. China Aluminum International |
| Contemporary Amperex vs. Shenzhen Topway Video | Contemporary Amperex vs. Tianshui Huatian Technology | Contemporary Amperex vs. Jinhe Biotechnology Co | Contemporary Amperex vs. Shuhua Sports Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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