Correlation Between Contemporary Amperex and Tengda Construction
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By analyzing existing cross correlation between Contemporary Amperex Technology and Tengda Construction Group, you can compare the effects of market volatilities on Contemporary Amperex and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Tengda Construction.
Diversification Opportunities for Contemporary Amperex and Tengda Construction
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Tengda is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Tengda Construction go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Tengda Construction
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.98 times more return on investment than Tengda Construction. However, Contemporary Amperex Technology is 1.02 times less risky than Tengda Construction. It trades about 0.01 of its potential returns per unit of risk. Tengda Construction Group is currently generating about -0.03 per unit of risk. If you would invest 25,624 in Contemporary Amperex Technology on October 26, 2024 and sell it today you would earn a total of 126.00 from holding Contemporary Amperex Technology or generate 0.49% 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. Tengda Construction Group
Performance |
| Timeline |
| Contemporary Amperex |
| Tengda Construction |
Contemporary Amperex and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Tengda Construction
The main advantage of trading using opposite Contemporary Amperex and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Contemporary Amperex vs. Agricultural Bank of | Contemporary Amperex vs. Industrial Bank Co | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Shanghai Xinhua Media |
| Tengda Construction vs. Industrial and Commercial | Tengda Construction vs. China Construction Bank | Tengda Construction vs. Agricultural Bank of | Tengda Construction vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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