Correlation Between Contemporary Amperex and Dongxing Sec
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By analyzing existing cross correlation between Contemporary Amperex Technology and Dongxing Sec Co, you can compare the effects of market volatilities on Contemporary Amperex and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Dongxing Sec.
Diversification Opportunities for Contemporary Amperex and Dongxing Sec
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Dongxing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Dongxing Sec go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Dongxing Sec
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.17 times less return on investment than Dongxing Sec. In addition to that, Contemporary Amperex is 1.08 times more volatile than Dongxing Sec Co. It trades about 0.08 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.1 per unit of volatility. If you would invest 829.00 in Dongxing Sec Co on September 1, 2024 and sell it today you would earn a total of 309.00 from holding Dongxing Sec Co or generate 37.27% 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. Dongxing Sec Co
Performance |
| Timeline |
| Contemporary Amperex |
| Dongxing Sec |
Contemporary Amperex and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Dongxing Sec
The main advantage of trading using opposite Contemporary Amperex and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec'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 |
| Dongxing Sec vs. BeiGene | Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Beijing Roborock Technology | Dongxing Sec vs. G bits Network Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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