Correlation Between Contemporary Amperex and Inspur Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Contemporary Amperex Technology and Inspur Software Co, you can compare the effects of market volatilities on Contemporary Amperex and Inspur Software 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 Inspur Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Inspur Software.
Diversification Opportunities for Contemporary Amperex and Inspur Software
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Inspur is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Inspur Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspur Software 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 Inspur Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspur Software has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Inspur Software go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Inspur Software
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.92 times more return on investment than Inspur Software. However, Contemporary Amperex Technology is 1.09 times less risky than Inspur Software. It trades about 0.04 of its potential returns per unit of risk. Inspur Software Co is currently generating about 0.0 per unit of risk. If you would invest 20,695 in Contemporary Amperex Technology on September 1, 2024 and sell it today you would earn a total of 5,429 from holding Contemporary Amperex Technology or generate 26.23% 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. Inspur Software Co
Performance |
| Timeline |
| Contemporary Amperex |
| Inspur Software |
Contemporary Amperex and Inspur Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Inspur Software
The main advantage of trading using opposite Contemporary Amperex and Inspur Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Inspur Software 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 Inspur Software will offset losses from the drop in Inspur Software's long position.| Contemporary Amperex vs. Cultural Investment Holdings | Contemporary Amperex vs. Gome Telecom Equipment | Contemporary Amperex vs. Bus Online Co | Contemporary Amperex vs. Holitech Technology Co |
| Inspur Software vs. Shenyang Huitian Thermal | Inspur Software vs. Chahua Modern Housewares | Inspur Software vs. Western Mining Co | Inspur Software vs. Shengda Mining 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |