Correlation Between Contemporary Amperex and Heilongjiang Transport
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By analyzing existing cross correlation between Contemporary Amperex Technology and Heilongjiang Transport Development, you can compare the effects of market volatilities on Contemporary Amperex and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Heilongjiang Transport.
Diversification Opportunities for Contemporary Amperex and Heilongjiang Transport
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Heilongjiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Heilongjiang Transport
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.57 times more return on investment than Heilongjiang Transport. However, Contemporary Amperex is 1.57 times more volatile than Heilongjiang Transport Development. It trades about 0.02 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 per unit of risk. If you would invest 25,640 in Contemporary Amperex Technology on November 4, 2024 and sell it today you would earn a total of 60.00 from holding Contemporary Amperex Technology or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Contemporary Amperex |
| Heilongjiang Transport |
Contemporary Amperex and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Heilongjiang Transport
The main advantage of trading using opposite Contemporary Amperex and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Contemporary Amperex vs. Shenwu Energy Saving | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Guosheng Financial Holding | Contemporary Amperex vs. Jiangsu Yueda Investment |
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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 Stocks Directory module to find actively traded stocks across global markets.
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