Correlation Between Industrial Bank and Contemporary Amperex
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Contemporary Amperex.
Diversification Opportunities for Industrial Bank and Contemporary Amperex
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Contemporary is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Industrial Bank 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 Industrial Bank Co 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 Industrial Bank i.e., Industrial Bank and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Industrial Bank and Contemporary Amperex
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.57 times more return on investment than Contemporary Amperex. However, Industrial Bank Co is 1.75 times less risky than Contemporary Amperex. It trades about 0.28 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.03 per unit of risk. If you would invest 1,921 in Industrial Bank Co on November 5, 2024 and sell it today you would earn a total of 110.00 from holding Industrial Bank Co or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Industrial Bank |
| Contemporary Amperex |
Industrial Bank and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Contemporary Amperex
The main advantage of trading using opposite Industrial Bank and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. Shuhua Sports Co | Industrial Bank vs. Ping An Insurance | Industrial Bank vs. Hua Hong Semiconductor | Industrial Bank vs. Shenzhen AV Display Co |
| Contemporary Amperex vs. Shenwu Energy Saving | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Guosheng Financial Holding | Contemporary Amperex vs. Jiangsu Yueda Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |