Correlation Between Contemporary Amperex and Beijing Topnew
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By analyzing existing cross correlation between Contemporary Amperex Technology and Beijing Topnew Info, you can compare the effects of market volatilities on Contemporary Amperex and Beijing Topnew 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 Topnew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Beijing Topnew.
Diversification Opportunities for Contemporary Amperex and Beijing Topnew
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Beijing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Beijing Topnew Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Topnew Info 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 Topnew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Topnew Info has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Beijing Topnew go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Beijing Topnew
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 11.68 times less return on investment than Beijing Topnew. But when comparing it to its historical volatility, Contemporary Amperex Technology is 3.15 times less risky than Beijing Topnew. It trades about 0.17 of its potential returns per unit of risk. Beijing Topnew Info is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 2,971 in Beijing Topnew Info on November 28, 2024 and sell it today you would earn a total of 2,356 from holding Beijing Topnew Info or generate 79.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Beijing Topnew Info
Performance |
| Timeline |
| Contemporary Amperex |
| Beijing Topnew Info |
Contemporary Amperex and Beijing Topnew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Beijing Topnew
The main advantage of trading using opposite Contemporary Amperex and Beijing Topnew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Beijing Topnew 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 Topnew will offset losses from the drop in Beijing Topnew's long position.| Contemporary Amperex vs. Songz Automobile Air | Contemporary Amperex vs. Vats Liquor Chain | Contemporary Amperex vs. Jiugui Liquor Co | Contemporary Amperex vs. Changchun Engley Automobile |
| Beijing Topnew vs. Suzhou Xingye Material | Beijing Topnew vs. Wankai New Materials | Beijing Topnew vs. Shanghai Yaoji Playing | Beijing Topnew vs. Everdisplay Optronics Shanghai |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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