Correlation Between Air China and Contemporary Amperex
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air China Ltd and Contemporary Amperex Technology, you can compare the effects of market volatilities on Air China and Contemporary Amperex 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 Air China with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Contemporary Amperex.
Diversification Opportunities for Air China and Contemporary Amperex
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and Contemporary is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Air China 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 Air China Ltd are associated (or correlated) with Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Air China i.e., Air China and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Air China and Contemporary Amperex
Assuming the 90 days trading horizon Air China is expected to generate 3.94 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Air China Ltd is 1.61 times less risky than Contemporary Amperex. It trades about 0.01 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22,737 in Contemporary Amperex Technology on September 12, 2024 and sell it today you would earn a total of 4,320 from holding Contemporary Amperex Technology or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Air China |
| Contemporary Amperex |
Air China and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Contemporary Amperex
The main advantage of trading using opposite Air China and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Contemporary Amperex 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 Contemporary Amperex will offset losses from the drop in Contemporary Amperex's long position.| Air China vs. Agricultural Bank of | Air China vs. Industrial and Commercial | Air China vs. Bank of China | Air China vs. PetroChina Co Ltd |
| Contemporary Amperex vs. Tengda Construction Group | Contemporary Amperex vs. Air China Ltd | Contemporary Amperex vs. ZYF Lopsking Aluminum | Contemporary Amperex vs. MayAir Technology 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |