Correlation Between Contemporary Amperex and Aerospace
Specify exactly 2 symbols:
By analyzing existing cross correlation between Contemporary Amperex Technology and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Contemporary Amperex and Aerospace 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 Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Aerospace.
Diversification Opportunities for Contemporary Amperex and Aerospace
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Aerospace is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Aerospace go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Aerospace
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.43 times less return on investment than Aerospace. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.21 times less risky than Aerospace. It trades about 0.08 of its potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 838.00 in Aerospace Hi Tech Holding on September 3, 2024 and sell it today you would earn a total of 355.00 from holding Aerospace Hi Tech Holding or generate 42.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Aerospace Hi Tech Holding
Performance |
| Timeline |
| Contemporary Amperex |
| Aerospace Hi Tech |
Contemporary Amperex and Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Aerospace
The main advantage of trading using opposite Contemporary Amperex and Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Aerospace 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 Aerospace will offset losses from the drop in Aerospace's long position.| Contemporary Amperex vs. Shenzhen Topway Video | Contemporary Amperex vs. Tianshui Huatian Technology | Contemporary Amperex vs. Jinhe Biotechnology Co | Contemporary Amperex vs. Shuhua Sports Co |
| Aerospace vs. PetroChina Co Ltd | Aerospace vs. China Mobile Limited | Aerospace vs. Industrial and Commercial | Aerospace vs. China Life Insurance |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |