Correlation Between Contemporary Amperex and Shenzhen Kexin
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By analyzing existing cross correlation between Contemporary Amperex Technology and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Contemporary Amperex and Shenzhen Kexin 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 Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Shenzhen Kexin.
Diversification Opportunities for Contemporary Amperex and Shenzhen Kexin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Shenzhen Kexin
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.01 times more return on investment than Shenzhen Kexin. However, Contemporary Amperex is 1.01 times more volatile than Shenzhen Kexin Communication. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.12 per unit of risk. If you would invest 18,119 in Contemporary Amperex Technology on September 2, 2024 and sell it today you would earn a total of 8,005 from holding Contemporary Amperex Technology or generate 44.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Contemporary Amperex |
| Shenzhen Kexin Commu |
Contemporary Amperex and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Shenzhen Kexin
The main advantage of trading using opposite Contemporary Amperex and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Shenzhen Kexin 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 Kexin will offset losses from the drop in Shenzhen Kexin'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 |
| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Mobile Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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