Correlation Between Contemporary Amperex and Zhuzhou Kibing
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By analyzing existing cross correlation between Contemporary Amperex Technology and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Contemporary Amperex and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Zhuzhou Kibing.
Diversification Opportunities for Contemporary Amperex and Zhuzhou Kibing
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Zhuzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Zhuzhou Kibing
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.04 times more return on investment than Zhuzhou Kibing. However, Contemporary Amperex is 1.04 times more volatile than Zhuzhou Kibing Group. It trades about 0.03 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.05 per unit of risk. If you would invest 21,837 in Contemporary Amperex Technology on September 26, 2024 and sell it today you would earn a total of 4,986 from holding Contemporary Amperex Technology or generate 22.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Contemporary Amperex |
| Zhuzhou Kibing Group |
Contemporary Amperex and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Zhuzhou Kibing
The main advantage of trading using opposite Contemporary Amperex and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Contemporary Amperex vs. Kweichow Moutai Co | Contemporary Amperex vs. G bits Network Technology | Contemporary Amperex vs. BYD Co Ltd | Contemporary Amperex vs. Beijing Roborock Technology |
| Zhuzhou Kibing vs. Jiangsu Jinling Sports | Zhuzhou Kibing vs. Panda Financial Holding | Zhuzhou Kibing vs. China Sports Industry | Zhuzhou Kibing vs. Caihong Display Devices |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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