Correlation Between Contemporary Amperex and Dongguan Aohai
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By analyzing existing cross correlation between Contemporary Amperex Technology and Dongguan Aohai Technology, you can compare the effects of market volatilities on Contemporary Amperex and Dongguan Aohai 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 Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Dongguan Aohai.
Diversification Opportunities for Contemporary Amperex and Dongguan Aohai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Dongguan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Dongguan Aohai
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.48 times less return on investment than Dongguan Aohai. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.19 times less risky than Dongguan Aohai. It trades about 0.03 of its potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,429 in Dongguan Aohai Technology on September 28, 2024 and sell it today you would earn a total of 941.00 from holding Dongguan Aohai Technology or generate 27.44% 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. Dongguan Aohai Technology
Performance |
| Timeline |
| Contemporary Amperex |
| Dongguan Aohai Technology |
Contemporary Amperex and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Dongguan Aohai
The main advantage of trading using opposite Contemporary Amperex and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai's long position.| Contemporary Amperex vs. Hengli Petrochemical Co | Contemporary Amperex vs. Dymatic Chemicals | Contemporary Amperex vs. Sinocat Environmental Technology | Contemporary Amperex vs. Ningbo Bohui Chemical |
| Dongguan Aohai vs. Kweichow Moutai Co | Dongguan Aohai vs. Contemporary Amperex Technology | Dongguan Aohai vs. G bits Network Technology | Dongguan Aohai vs. BYD Co Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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