Correlation Between Agricultural Bank and Contemporary Amperex
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By analyzing existing cross correlation between Agricultural Bank of and Contemporary Amperex Technology, you can compare the effects of market volatilities on Agricultural 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 Agricultural Bank with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Contemporary Amperex.
Diversification Opportunities for Agricultural Bank and Contemporary Amperex
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agricultural and Contemporary is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Agricultural 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 Agricultural Bank of 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 Agricultural Bank i.e., Agricultural Bank and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Agricultural Bank and Contemporary Amperex
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.59 times more return on investment than Contemporary Amperex. However, Agricultural Bank of is 1.71 times less risky than Contemporary Amperex. It trades about 0.09 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.01 per unit of risk. If you would invest 476.00 in Agricultural Bank of on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Agricultural Bank of or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Agricultural Bank |
| Contemporary Amperex |
Agricultural Bank and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Contemporary Amperex
The main advantage of trading using opposite Agricultural Bank and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural 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.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. Postal Savings Bank |
| Contemporary Amperex vs. Agricultural Bank of | Contemporary Amperex vs. Industrial Bank Co | Contemporary Amperex vs. Ciwen Media Co | Contemporary Amperex vs. Shanghai Xinhua Media |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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