Correlation Between Contemporary Amperex and Lotus Health
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By analyzing existing cross correlation between Contemporary Amperex Technology and Lotus Health Group, you can compare the effects of market volatilities on Contemporary Amperex and Lotus Health 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 Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Lotus Health.
Diversification Opportunities for Contemporary Amperex and Lotus Health
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Lotus is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Lotus Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Health Group 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 Lotus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Health Group has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Lotus Health go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Lotus Health
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.5 times more return on investment than Lotus Health. However, Contemporary Amperex Technology is 2.01 times less risky than Lotus Health. It trades about 0.03 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.01 per unit of risk. If you would invest 25,552 in Contemporary Amperex Technology on November 5, 2024 and sell it today you would earn a total of 148.00 from holding Contemporary Amperex Technology or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Lotus Health Group
Performance |
| Timeline |
| Contemporary Amperex |
| Lotus Health Group |
Contemporary Amperex and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Lotus Health
The main advantage of trading using opposite Contemporary Amperex and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Lotus Health 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 Lotus Health will offset losses from the drop in Lotus Health's long position.| Contemporary Amperex vs. China Everbright Bank | Contemporary Amperex vs. Runjian Communication Co | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Industrial Bank Co |
| Lotus Health vs. Vohringer Home Technology | Lotus Health vs. Hongrun Construction Group | Lotus Health vs. Quectel Wireless Solutions | Lotus Health vs. Beijing Kingsoft Office |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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