Correlation Between China Construction and Contemporary Amperex
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By analyzing existing cross correlation between China Construction Bank and Contemporary Amperex Technology, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Contemporary Amperex.
Diversification Opportunities for China Construction and Contemporary Amperex
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Contemporary is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Contemporary Amperex go up and down completely randomly.
Pair Corralation between China Construction and Contemporary Amperex
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.52 times more return on investment than Contemporary Amperex. However, China Construction Bank is 1.93 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 0.02 per unit of risk. If you would invest 526.00 in China Construction Bank on November 5, 2024 and sell it today you would earn a total of 328.00 from holding China Construction Bank or generate 62.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| China Construction Bank |
| Contemporary Amperex |
China Construction and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Contemporary Amperex
The main advantage of trading using opposite China Construction and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Easyhome New Retail | China Construction vs. Chongqing Changan Automobile | China Construction vs. Ningbo Ligong Online | China Construction vs. Ningbo Tip Rubber |
| Contemporary Amperex vs. China Everbright Bank | Contemporary Amperex vs. Runjian Communication Co | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Industrial Bank 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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