Correlation Between Contemporary Amperex and Peoples Insurance
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By analyzing existing cross correlation between Contemporary Amperex Technology and Peoples Insurance of, you can compare the effects of market volatilities on Contemporary Amperex and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Peoples Insurance.
Diversification Opportunities for Contemporary Amperex and Peoples Insurance
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contemporary and Peoples is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Peoples Insurance go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Peoples Insurance
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.53 times more return on investment than Peoples Insurance. However, Contemporary Amperex is 1.53 times more volatile than Peoples Insurance of. It trades about 0.21 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.14 per unit of risk. If you would invest 25,700 in Contemporary Amperex Technology on November 27, 2024 and sell it today you would earn a total of 1,450 from holding Contemporary Amperex Technology or generate 5.64% 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. Peoples Insurance of
Performance |
| Timeline |
| Contemporary Amperex |
| Peoples Insurance |
Contemporary Amperex and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Peoples Insurance
The main advantage of trading using opposite Contemporary Amperex and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Contemporary Amperex vs. Eit Environmental Development | Contemporary Amperex vs. Sinosteel Engineering and | Contemporary Amperex vs. Xiangpiaopiao Food Co | Contemporary Amperex vs. Jiangxi Sunshine Dairy |
| Peoples Insurance vs. Zijin Mining Group | Peoples Insurance vs. Chengdu Xingrong Investment | Peoples Insurance vs. Guocheng Mining Co | Peoples Insurance vs. Henan Shuanghui Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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