Correlation Between Contemporary Amperex and Bank of XiAn
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By analyzing existing cross correlation between Contemporary Amperex Technology and Bank of XiAn, you can compare the effects of market volatilities on Contemporary Amperex and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Bank of XiAn.
Diversification Opportunities for Contemporary Amperex and Bank of XiAn
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Bank is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Bank of XiAn go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Bank of XiAn
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.73 times more return on investment than Bank of XiAn. However, Contemporary Amperex is 1.73 times more volatile than Bank of XiAn. It trades about 0.11 of its potential returns per unit of risk. Bank of XiAn is currently generating about 0.08 per unit of risk. If you would invest 18,476 in Contemporary Amperex Technology on November 2, 2024 and sell it today you would earn a total of 7,224 from holding Contemporary Amperex Technology or generate 39.1% 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. Bank of XiAn
Performance |
| Timeline |
| Contemporary Amperex |
| Bank of XiAn |
Contemporary Amperex and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Bank of XiAn
The main advantage of trading using opposite Contemporary Amperex and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Contemporary Amperex vs. Jiangsu Hoperun Software | Contemporary Amperex vs. Fujian Boss Software | Contemporary Amperex vs. Keda Clean Energy | Contemporary Amperex vs. Servyou Software Group |
| Bank of XiAn vs. Simei Media Co | Bank of XiAn vs. Servyou Software Group | Bank of XiAn vs. Guangdong Jinma Entertainment | Bank of XiAn vs. Ciwen Media 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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