Correlation Between Nantong Haixing and Contemporary Amperex
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By analyzing existing cross correlation between Nantong Haixing Electronics and Contemporary Amperex Technology, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Contemporary Amperex.
Diversification Opportunities for Nantong Haixing and Contemporary Amperex
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nantong and Contemporary is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Nantong Haixing and Contemporary Amperex
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the Contemporary Amperex. In addition to that, Nantong Haixing is 1.29 times more volatile than Contemporary Amperex Technology. It trades about -0.13 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about -0.1 per unit of volatility. If you would invest 26,720 in Contemporary Amperex Technology on October 17, 2024 and sell it today you would lose (1,100) from holding Contemporary Amperex Technology or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Nantong Haixing Elec |
| Contemporary Amperex |
Nantong Haixing and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Contemporary Amperex
The main advantage of trading using opposite Nantong Haixing and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. China Petroleum Chemical | Nantong Haixing vs. PetroChina Co Ltd | Nantong Haixing vs. China State Construction | Nantong Haixing vs. China Railway Group |
| Contemporary Amperex vs. Nantong Haixing Electronics | Contemporary Amperex vs. Shenzhen Clou Electronics | Contemporary Amperex vs. Anhui Shiny Electronic | Contemporary Amperex vs. Yangmei Chemical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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