Correlation Between Hubei Dinglong and Contemporary Amperex
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By analyzing existing cross correlation between Hubei Dinglong Chemical and Contemporary Amperex Technology, you can compare the effects of market volatilities on Hubei Dinglong 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 Hubei Dinglong with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Dinglong and Contemporary Amperex.
Diversification Opportunities for Hubei Dinglong and Contemporary Amperex
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Contemporary is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Dinglong Chemical and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Hubei Dinglong 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 Hubei Dinglong Chemical 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 Hubei Dinglong i.e., Hubei Dinglong and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Hubei Dinglong and Contemporary Amperex
Assuming the 90 days trading horizon Hubei Dinglong Chemical is expected to under-perform the Contemporary Amperex. In addition to that, Hubei Dinglong is 1.2 times more volatile than Contemporary Amperex Technology. It trades about -0.16 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about -0.06 per unit of volatility. If you would invest 28,200 in Contemporary Amperex Technology on September 14, 2024 and sell it today you would lose (829.00) from holding Contemporary Amperex Technology or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Dinglong Chemical vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Hubei Dinglong Chemical |
| Contemporary Amperex |
Hubei Dinglong and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Dinglong and Contemporary Amperex
The main advantage of trading using opposite Hubei Dinglong and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Dinglong 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.| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining |
| Contemporary Amperex vs. Zhejiang Yayi Metal | Contemporary Amperex vs. Huafa Industrial Co | Contemporary Amperex vs. JiShi Media Co | Contemporary Amperex vs. Xinjiang Baodi Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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