Correlation Between Contemporary Amperex and Gotion High
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By analyzing existing cross correlation between Contemporary Amperex Technology and Gotion High tech, you can compare the effects of market volatilities on Contemporary Amperex and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Gotion High.
Diversification Opportunities for Contemporary Amperex and Gotion High
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Gotion is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Gotion High go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Gotion High
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.09 times more return on investment than Gotion High. However, Contemporary Amperex is 1.09 times more volatile than Gotion High tech. It trades about 0.02 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.02 per unit of risk. If you would invest 24,146 in Contemporary Amperex Technology on August 27, 2024 and sell it today you would earn a total of 1,764 from holding Contemporary Amperex Technology or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Gotion High tech
Performance |
| Timeline |
| Contemporary Amperex |
| Gotion High tech |
Contemporary Amperex and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Gotion High
The main advantage of trading using opposite Contemporary Amperex and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| Contemporary Amperex vs. Malion New Materials | Contemporary Amperex vs. Eastern Communications Co | Contemporary Amperex vs. Guangzhou Tinci Materials | Contemporary Amperex vs. Grinm Advanced Materials |
| Gotion High vs. Nuode Investment Co | Gotion High vs. Masterwork Machinery | Gotion High vs. Hunan Tyen Machinery | Gotion High vs. Metro Investment Development |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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