Correlation Between Contemporary Amperex and Beijing Seeyon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Contemporary Amperex Technology and Beijing Seeyon Internet, you can compare the effects of market volatilities on Contemporary Amperex and Beijing Seeyon 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 Beijing Seeyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Beijing Seeyon.
Diversification Opportunities for Contemporary Amperex and Beijing Seeyon
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Beijing Seeyon Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Seeyon Internet 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 Beijing Seeyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Seeyon Internet has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Beijing Seeyon go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Beijing Seeyon
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.43 times more return on investment than Beijing Seeyon. However, Contemporary Amperex Technology is 2.35 times less risky than Beijing Seeyon. It trades about -0.24 of its potential returns per unit of risk. Beijing Seeyon Internet is currently generating about -0.16 per unit of risk. If you would invest 27,380 in Contemporary Amperex Technology on October 18, 2024 and sell it today you would lose (2,293) from holding Contemporary Amperex Technology or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. Beijing Seeyon Internet
Performance |
| Timeline |
| Contemporary Amperex |
| Beijing Seeyon Internet |
Contemporary Amperex and Beijing Seeyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Beijing Seeyon
The main advantage of trading using opposite Contemporary Amperex and Beijing Seeyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Beijing Seeyon 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 Beijing Seeyon will offset losses from the drop in Beijing Seeyon's long position.| Contemporary Amperex vs. Nantong Haixing Electronics | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Anhui Shiny Electronic | Contemporary Amperex vs. Yangmei Chemical Co |
| Beijing Seeyon vs. China Life Insurance | Beijing Seeyon vs. Cinda Securities Co | Beijing Seeyon vs. Piotech Inc A | Beijing Seeyon vs. Dongxing Sec Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |