Correlation Between Contemporary Amperex and Kangping Technology
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By analyzing existing cross correlation between Contemporary Amperex Technology and Kangping Technology Co, you can compare the effects of market volatilities on Contemporary Amperex and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Kangping Technology.
Diversification Opportunities for Contemporary Amperex and Kangping Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Kangping is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Kangping Technology go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Kangping Technology
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.58 times more return on investment than Kangping Technology. However, Contemporary Amperex Technology is 1.74 times less risky than Kangping Technology. It trades about -0.1 of its potential returns per unit of risk. Kangping Technology Co is currently generating about -0.15 per unit of risk. If you would invest 26,720 in Contemporary Amperex Technology on October 17, 2024 and sell it today you would lose (1,100) from holding Contemporary Amperex Technology or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Kangping Technology Co
Performance |
| Timeline |
| Contemporary Amperex |
| Kangping Technology |
Contemporary Amperex and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Kangping Technology
The main advantage of trading using opposite Contemporary Amperex and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Contemporary Amperex vs. Nantong Haixing Electronics | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Anhui Shiny Electronic | Contemporary Amperex vs. Yangmei Chemical Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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