Correlation Between Contemporary Amperex and Jinlong Machinery
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By analyzing existing cross correlation between Contemporary Amperex Technology and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Contemporary Amperex and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Jinlong Machinery.
Diversification Opportunities for Contemporary Amperex and Jinlong Machinery
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Contemporary and Jinlong is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Jinlong Machinery
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.65 times more return on investment than Jinlong Machinery. However, Contemporary Amperex Technology is 1.55 times less risky than Jinlong Machinery. It trades about 0.02 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about 0.01 per unit of risk. If you would invest 24,446 in Contemporary Amperex Technology on October 25, 2024 and sell it today you would earn a total of 1,304 from holding Contemporary Amperex Technology or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Contemporary Amperex |
| Jinlong Machinery |
Contemporary Amperex and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Jinlong Machinery
The main advantage of trading using opposite Contemporary Amperex and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Contemporary Amperex vs. Agricultural Bank of | Contemporary Amperex vs. Industrial Bank Co | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Shanghai Xinhua Media |
| Jinlong Machinery vs. China State Construction | Jinlong Machinery vs. Poly Real Estate | Jinlong Machinery vs. China Vanke Co | Jinlong Machinery vs. China Merchants Shekou |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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