Correlation Between Contemporary Amperex and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Contemporary Amperex Technology and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Contemporary Amperex and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Shenzhen Zhongzhuang.
Diversification Opportunities for Contemporary Amperex and Shenzhen Zhongzhuang
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.76 times more return on investment than Shenzhen Zhongzhuang. However, Contemporary Amperex Technology is 1.32 times less risky than Shenzhen Zhongzhuang. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.01 per unit of risk. If you would invest 20,302 in Contemporary Amperex Technology on August 31, 2024 and sell it today you would earn a total of 5,822 from holding Contemporary Amperex Technology or generate 28.68% 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. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Contemporary Amperex |
| Shenzhen Zhongzhuang |
Contemporary Amperex and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Shenzhen Zhongzhuang
The main advantage of trading using opposite Contemporary Amperex and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Contemporary Amperex vs. Easyhome New Retail | Contemporary Amperex vs. Orinko Advanced Plastics | Contemporary Amperex vs. Malion New Materials | Contemporary Amperex vs. Jinsanjiang Silicon Material |
| Shenzhen Zhongzhuang vs. Cultural Investment Holdings | Shenzhen Zhongzhuang vs. Gome Telecom Equipment | Shenzhen Zhongzhuang vs. Bus Online Co | Shenzhen Zhongzhuang vs. Holitech Technology 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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