Correlation Between Contemporary Amperex and Tieling Newcity
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By analyzing existing cross correlation between Contemporary Amperex Technology and Tieling Newcity Investment, you can compare the effects of market volatilities on Contemporary Amperex and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Tieling Newcity.
Diversification Opportunities for Contemporary Amperex and Tieling Newcity
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Contemporary and Tieling is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Tieling Newcity go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Tieling Newcity
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 3.04 times less return on investment than Tieling Newcity. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.16 times less risky than Tieling Newcity. It trades about 0.02 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Tieling Newcity Investment on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Tieling Newcity Investment or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Tieling Newcity Investment
Performance |
| Timeline |
| Contemporary Amperex |
| Tieling Newcity Inve |
Contemporary Amperex and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Tieling Newcity
The main advantage of trading using opposite Contemporary Amperex and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity'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 |
| Tieling Newcity vs. Grandblue Environment Co | Tieling Newcity vs. Hangzhou Guotai Environmental | Tieling Newcity vs. Wangneng Environment Co | Tieling Newcity vs. Guangdong Liantai Environmental |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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