Correlation Between Contemporary Amperex and Chongqing Gas
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By analyzing existing cross correlation between Contemporary Amperex Technology and Chongqing Gas Grp, you can compare the effects of market volatilities on Contemporary Amperex and Chongqing Gas 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 Chongqing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Chongqing Gas.
Diversification Opportunities for Contemporary Amperex and Chongqing Gas
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Chongqing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Chongqing Gas Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Gas Grp 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 Chongqing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Gas Grp has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Chongqing Gas go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Chongqing Gas
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.68 times more return on investment than Chongqing Gas. However, Contemporary Amperex is 1.68 times more volatile than Chongqing Gas Grp. It trades about 0.03 of its potential returns per unit of risk. Chongqing Gas Grp is currently generating about -0.03 per unit of risk. If you would invest 21,724 in Contemporary Amperex Technology on September 3, 2024 and sell it today you would earn a total of 4,400 from holding Contemporary Amperex Technology or generate 20.25% 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. Chongqing Gas Grp
Performance |
| Timeline |
| Contemporary Amperex |
| Chongqing Gas Grp |
Contemporary Amperex and Chongqing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Chongqing Gas
The main advantage of trading using opposite Contemporary Amperex and Chongqing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Chongqing Gas 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 Chongqing Gas will offset losses from the drop in Chongqing Gas' long position.| Contemporary Amperex vs. Shenzhen Topway Video | Contemporary Amperex vs. Tianshui Huatian Technology | Contemporary Amperex vs. Jinhe Biotechnology Co | Contemporary Amperex vs. Shuhua Sports Co |
| Chongqing Gas vs. Zhejiang Yayi Metal | Chongqing Gas vs. Shandong Hongchuang Aluminum | Chongqing Gas vs. Guangdong Jingyi Metal | Chongqing Gas vs. Jilin Jlu Communication |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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