Correlation Between Bank of Communications and Contemporary Amperex
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By analyzing existing cross correlation between Bank of Communications and Contemporary Amperex Technology, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Contemporary Amperex.
Diversification Opportunities for Bank of Communications and Contemporary Amperex
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Contemporary is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Bank of Communications and Contemporary Amperex
Assuming the 90 days trading horizon Bank of Communications is expected to generate 4.46 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Bank of Communications is 1.92 times less risky than Contemporary Amperex. It trades about 0.04 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 19,776 in Contemporary Amperex Technology on August 29, 2024 and sell it today you would earn a total of 6,214 from holding Contemporary Amperex Technology or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Bank of Communications |
| Contemporary Amperex |
Bank of Communications and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Contemporary Amperex
The main advantage of trading using opposite Bank of Communications and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. Contemporary Amperex Technology | Bank of Communications vs. G bits Network Technology | Bank of Communications vs. BYD Co Ltd |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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