Correlation Between Contemporary Amperex and China Citic
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By analyzing existing cross correlation between Contemporary Amperex Technology and China Citic Bank, you can compare the effects of market volatilities on Contemporary Amperex and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and China Citic.
Diversification Opportunities for Contemporary Amperex and China Citic
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and China Citic go up and down completely randomly.
Pair Corralation between Contemporary Amperex and China Citic
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.74 times more return on investment than China Citic. However, Contemporary Amperex is 1.74 times more volatile than China Citic Bank. It trades about 0.12 of its potential returns per unit of risk. China Citic Bank is currently generating about 0.02 per unit of risk. If you would invest 17,607 in Contemporary Amperex Technology on September 27, 2024 and sell it today you would earn a total of 9,190 from holding Contemporary Amperex Technology or generate 52.2% 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. China Citic Bank
Performance |
| Timeline |
| Contemporary Amperex |
| China Citic Bank |
Contemporary Amperex and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and China Citic
The main advantage of trading using opposite Contemporary Amperex and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic'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 |
| China Citic vs. Kweichow Moutai Co | China Citic vs. Contemporary Amperex Technology | China Citic vs. G bits Network Technology | China Citic vs. BYD Co Ltd |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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