Correlation Between Jinhe Biotechnology and Contemporary Amperex
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Jinhe Biotechnology 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 Jinhe Biotechnology with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Contemporary Amperex.
Diversification Opportunities for Jinhe Biotechnology and Contemporary Amperex
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Contemporary is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology i.e., Jinhe Biotechnology and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Contemporary Amperex
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 1.61 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.94 times less risky than Contemporary Amperex. It trades about 0.19 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 18,565 in Contemporary Amperex Technology on September 3, 2024 and sell it today you would earn a total of 7,559 from holding Contemporary Amperex Technology or generate 40.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Jinhe Biotechnology |
| Contemporary Amperex |
Jinhe Biotechnology and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Contemporary Amperex
The main advantage of trading using opposite Jinhe Biotechnology and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology 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.| Jinhe Biotechnology vs. Chengdu Kanghua Biological | Jinhe Biotechnology vs. Beijing Wantai Biological | Jinhe Biotechnology vs. Suzhou Novoprotein Scientific | Jinhe Biotechnology vs. Aluminum Corp of |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |