Correlation Between Contemporary Amperex and Eastern Communications
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By analyzing existing cross correlation between Contemporary Amperex Technology and Eastern Communications Co, you can compare the effects of market volatilities on Contemporary Amperex and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Eastern Communications.
Diversification Opportunities for Contemporary Amperex and Eastern Communications
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and Eastern is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Eastern Communications go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Eastern Communications
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.94 times more return on investment than Eastern Communications. However, Contemporary Amperex Technology is 1.07 times less risky than Eastern Communications. It trades about 0.06 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of risk. If you would invest 24,803 in Contemporary Amperex Technology on August 31, 2024 and sell it today you would earn a total of 667.00 from holding Contemporary Amperex Technology or generate 2.69% 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. Eastern Communications Co
Performance |
| Timeline |
| Contemporary Amperex |
| Eastern Communications |
Contemporary Amperex and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and Eastern Communications
The main advantage of trading using opposite Contemporary Amperex and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Contemporary Amperex vs. Easyhome New Retail | Contemporary Amperex vs. Orinko Advanced Plastics | Contemporary Amperex vs. Malion New Materials | Contemporary Amperex vs. Jinsanjiang Silicon Material |
| Eastern Communications vs. Kweichow Moutai Co | Eastern Communications vs. NAURA Technology Group | Eastern Communications vs. APT Medical | Eastern Communications vs. Contemporary Amperex 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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