Correlation Between Orinko Advanced and Contemporary Amperex
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By analyzing existing cross correlation between Orinko Advanced Plastics and Contemporary Amperex Technology, you can compare the effects of market volatilities on Orinko Advanced 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 Orinko Advanced with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orinko Advanced and Contemporary Amperex.
Diversification Opportunities for Orinko Advanced and Contemporary Amperex
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Orinko and Contemporary is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Orinko Advanced Plastics and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Orinko Advanced 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 Orinko Advanced Plastics 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 Orinko Advanced i.e., Orinko Advanced and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Orinko Advanced and Contemporary Amperex
Assuming the 90 days trading horizon Orinko Advanced is expected to generate 1.86 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Orinko Advanced Plastics is 1.17 times less risky than Contemporary Amperex. It trades about 0.05 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 20,597 in Contemporary Amperex Technology on September 2, 2024 and sell it today you would earn a total of 5,527 from holding Contemporary Amperex Technology or generate 26.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orinko Advanced Plastics vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Orinko Advanced Plastics |
| Contemporary Amperex |
Orinko Advanced and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orinko Advanced and Contemporary Amperex
The main advantage of trading using opposite Orinko Advanced and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orinko Advanced 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.| Orinko Advanced vs. Zijin Mining Group | Orinko Advanced vs. Wanhua Chemical Group | Orinko Advanced vs. Baoshan Iron Steel | Orinko Advanced vs. Shandong Gold Mining |
| Contemporary Amperex vs. Sunwave Communications Co | Contemporary Amperex vs. Yunnan Jianzhijia Health Chain | Contemporary Amperex vs. Fujian Newland Computer | Contemporary Amperex vs. Anhui Huaren Health |
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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