Correlation Between Contemporary Amperex and Maoming Petro
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By analyzing existing cross correlation between Contemporary Amperex Technology and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Contemporary Amperex and Maoming Petro 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 Contemporary Amperex with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Maoming Petro.
Diversification Opportunities for Contemporary Amperex and Maoming Petro
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Maoming is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Contemporary Amperex 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 Contemporary Amperex Technology are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Maoming Petro go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Maoming Petro
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.76 times less return on investment than Maoming Petro. In addition to that, Contemporary Amperex is 1.31 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.02 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.04 per unit of volatility. If you would invest 360.00 in Maoming Petro Chemical Shihua on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Maoming Petro Chemical Shihua or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Contemporary Amperex |
| Maoming Petro Chemical |
Contemporary Amperex and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Maoming Petro
The main advantage of trading using opposite Contemporary Amperex and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Contemporary Amperex vs. Shenwu Energy Saving | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Guosheng Financial Holding | Contemporary Amperex vs. Jiangsu Yueda Investment |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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