Correlation Between Contemporary Amperex and Jonjee Hi-tech
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By analyzing existing cross correlation between Contemporary Amperex Technology and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Contemporary Amperex and Jonjee Hi-tech 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 Jonjee Hi-tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Jonjee Hi-tech.
Diversification Opportunities for Contemporary Amperex and Jonjee Hi-tech
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Jonjee is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi-tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Jonjee Hi-tech go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Jonjee Hi-tech
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.25 times less return on investment than Jonjee Hi-tech. In addition to that, Contemporary Amperex is 1.17 times more volatile than Jonjee Hi tech Industrial. It trades about 0.03 of its total potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about 0.04 per unit of volatility. If you would invest 2,093 in Jonjee Hi tech Industrial on November 6, 2024 and sell it today you would earn a total of 19.00 from holding Jonjee Hi tech Industrial or generate 0.91% 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. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Contemporary Amperex |
| Jonjee Hi tech |
Contemporary Amperex and Jonjee Hi-tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Jonjee Hi-tech
The main advantage of trading using opposite Contemporary Amperex and Jonjee Hi-tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Jonjee Hi-tech 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 Jonjee Hi-tech will offset losses from the drop in Jonjee Hi-tech's long position.| Contemporary Amperex vs. Chongqing Shunbo Aluminum | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Tianshan Aluminum Group | Contemporary Amperex vs. Epoxy Base Electronic |
| Jonjee Hi-tech vs. China Longyuan Power | Jonjee Hi-tech vs. PetroChina Co Ltd | Jonjee Hi-tech vs. Guangxi Guiguan Electric | Jonjee Hi-tech vs. Yantai North Andre |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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