Correlation Between Hainan Mining and Contemporary Amperex
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By analyzing existing cross correlation between Hainan Mining Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Contemporary Amperex.
Diversification Opportunities for Hainan Mining and Contemporary Amperex
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Contemporary is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining 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 Hainan Mining 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 Hainan Mining 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 Hainan Mining i.e., Hainan Mining and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Hainan Mining and Contemporary Amperex
Assuming the 90 days trading horizon Hainan Mining is expected to generate 7.21 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Hainan Mining Co is 1.12 times less risky than Contemporary Amperex. It trades about 0.0 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 20,905 in Contemporary Amperex Technology on December 2, 2024 and sell it today you would earn a total of 5,525 from holding Contemporary Amperex Technology or generate 26.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Hainan Mining |
| Contemporary Amperex |
Hainan Mining and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Contemporary Amperex
The main advantage of trading using opposite Hainan Mining and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Suofeiya Home Collection | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Suzhou Douson Drilling | Hainan Mining vs. Nanjing OLO Home |
| Contemporary Amperex vs. China Sports Industry | Contemporary Amperex vs. Hefei Metalforming Mach | Contemporary Amperex vs. Peoples Insurance of | Contemporary Amperex vs. GigaDevice SemiconductorBeiji |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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