Correlation Between Contemporary Amperex and DR
Specify exactly 2 symbols:
By analyzing existing cross correlation between Contemporary Amperex Technology and DR Limited, you can compare the effects of market volatilities on Contemporary Amperex and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and DR.
Diversification Opportunities for Contemporary Amperex and DR
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and DR is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and DR go up and down completely randomly.
Pair Corralation between Contemporary Amperex and DR
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 2.56 times less return on investment than DR. But when comparing it to its historical volatility, Contemporary Amperex Technology is 1.26 times less risky than DR. It trades about 0.09 of its potential returns per unit of risk. DR Limited is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,250 in DR Limited on September 4, 2024 and sell it today you would earn a total of 275.00 from holding DR Limited or generate 12.22% 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. DR Limited
Performance |
| Timeline |
| Contemporary Amperex |
| DR Limited |
Contemporary Amperex and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and DR
The main advantage of trading using opposite Contemporary Amperex and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| Contemporary Amperex vs. Yindu Kitchen Equipment | Contemporary Amperex vs. Luolai Home Textile | Contemporary Amperex vs. Easyhome New Retail | Contemporary Amperex vs. Cangzhou Mingzhu Plastic |
| DR vs. Ligao Foods CoLtd | DR vs. Cultural Investment Holdings | DR vs. Harbin Hatou Investment | DR vs. Xiandai Investment 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |