Correlation Between NAURA Technology and Contemporary Amperex
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By analyzing existing cross correlation between NAURA Technology Group and Contemporary Amperex Technology, you can compare the effects of market volatilities on NAURA Technology 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 NAURA Technology with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Contemporary Amperex.
Diversification Opportunities for NAURA Technology and Contemporary Amperex
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NAURA and Contemporary is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and NAURA Technology 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 NAURA Technology Group 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 NAURA Technology i.e., NAURA Technology and Contemporary Amperex go up and down completely randomly.
Pair Corralation between NAURA Technology and Contemporary Amperex
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 1.46 times more return on investment than Contemporary Amperex. However, NAURA Technology is 1.46 times more volatile than Contemporary Amperex Technology. It trades about 0.15 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.03 per unit of risk. If you would invest 38,450 in NAURA Technology Group on August 27, 2024 and sell it today you would earn a total of 3,803 from holding NAURA Technology Group or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| NAURA Technology |
| Contemporary Amperex |
NAURA Technology and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Contemporary Amperex
The main advantage of trading using opposite NAURA Technology and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology 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.| NAURA Technology vs. Biwin Storage Technology | NAURA Technology vs. PetroChina Co Ltd | NAURA Technology vs. Industrial and Commercial | NAURA Technology vs. China Construction Bank |
| Contemporary Amperex vs. Kweichow Moutai Co | Contemporary Amperex vs. Shenzhen Mindray Bio Medical | Contemporary Amperex vs. Jiangsu Pacific Quartz | Contemporary Amperex vs. G bits Network 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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