Correlation Between Contemporary Amperex and Central China
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By analyzing existing cross correlation between Contemporary Amperex Technology and Central China Land, you can compare the effects of market volatilities on Contemporary Amperex and Central China 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 Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Central China.
Diversification Opportunities for Contemporary Amperex and Central China
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Central is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land 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 Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Central China go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Central China
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.99 times more return on investment than Central China. However, Contemporary Amperex Technology is 1.01 times less risky than Central China. It trades about 0.08 of its potential returns per unit of risk. Central China Land is currently generating about 0.03 per unit of risk. If you would invest 16,285 in Contemporary Amperex Technology on August 25, 2024 and sell it today you would earn a total of 9,625 from holding Contemporary Amperex Technology or generate 59.1% 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. Central China Land
Performance |
| Timeline |
| Contemporary Amperex |
| Central China Land |
Contemporary Amperex and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Central China
The main advantage of trading using opposite Contemporary Amperex and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Contemporary Amperex vs. Harbin Air Conditioning | Contemporary Amperex vs. Markor International Home | Contemporary Amperex vs. Anhui Huilong Agricultural | Contemporary Amperex vs. Hunan Tyen Machinery |
| Central China vs. China State Construction | Central China vs. Huafa Industrial Co | Central China vs. China International Capital | Central China vs. Kweichow Moutai 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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