Correlation Between Contemporary Amperex and Beijing SuperMap
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By analyzing existing cross correlation between Contemporary Amperex Technology and Beijing SuperMap Software, you can compare the effects of market volatilities on Contemporary Amperex and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Beijing SuperMap.
Diversification Opportunities for Contemporary Amperex and Beijing SuperMap
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Beijing SuperMap
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.73 times more return on investment than Beijing SuperMap. However, Contemporary Amperex Technology is 1.36 times less risky than Beijing SuperMap. It trades about 0.12 of its potential returns per unit of risk. Beijing SuperMap Software is currently generating about -0.01 per unit of risk. If you would invest 24,620 in Contemporary Amperex Technology on September 2, 2024 and sell it today you would earn a total of 1,504 from holding Contemporary Amperex Technology or generate 6.11% 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. Beijing SuperMap Software
Performance |
| Timeline |
| Contemporary Amperex |
| Beijing SuperMap Software |
Contemporary Amperex and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Beijing SuperMap
The main advantage of trading using opposite Contemporary Amperex and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap's long position.| Contemporary Amperex vs. Sunwave Communications Co | Contemporary Amperex vs. Yunnan Jianzhijia Health Chain | Contemporary Amperex vs. Fujian Newland Computer | Contemporary Amperex vs. Anhui Huaren Health |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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