Correlation Between Contemporary Amperex and XiaMen HongXin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Contemporary Amperex Technology and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Contemporary Amperex and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and XiaMen HongXin.
Diversification Opportunities for Contemporary Amperex and XiaMen HongXin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and XiaMen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Contemporary Amperex and XiaMen HongXin
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.74 times more return on investment than XiaMen HongXin. However, Contemporary Amperex Technology is 1.35 times less risky than XiaMen HongXin. It trades about 0.08 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about 0.05 per unit of risk. If you would invest 18,820 in Contemporary Amperex Technology on October 13, 2024 and sell it today you would earn a total of 5,780 from holding Contemporary Amperex Technology or generate 30.71% 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. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Contemporary Amperex |
| XiaMen HongXin Electron |
Contemporary Amperex and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and XiaMen HongXin
The main advantage of trading using opposite Contemporary Amperex and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Contemporary Amperex vs. Sportsoul Co Ltd | Contemporary Amperex vs. Huayi Brothers Media | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Changjiang Publishing Media |
| XiaMen HongXin vs. Biwin Storage Technology | XiaMen HongXin vs. PetroChina Co Ltd | XiaMen HongXin vs. Industrial and Commercial | XiaMen HongXin vs. China Construction Bank |
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.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |