Correlation Between Liaoning Chengda and Contemporary Amperex
Specify exactly 2 symbols:
By analyzing existing cross correlation between Liaoning Chengda Biotechnology and Contemporary Amperex Technology, you can compare the effects of market volatilities on Liaoning Chengda 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 Liaoning Chengda with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Chengda and Contemporary Amperex.
Diversification Opportunities for Liaoning Chengda and Contemporary Amperex
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Liaoning and Contemporary is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Chengda Biotechnology and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Liaoning Chengda 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 Liaoning Chengda Biotechnology 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 Liaoning Chengda i.e., Liaoning Chengda and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Liaoning Chengda and Contemporary Amperex
Assuming the 90 days trading horizon Liaoning Chengda is expected to generate 2.52 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Liaoning Chengda Biotechnology is 1.51 times less risky than Contemporary Amperex. It trades about 0.1 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 18,282 in Contemporary Amperex Technology on August 28, 2024 and sell it today you would earn a total of 8,128 from holding Contemporary Amperex Technology or generate 44.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Chengda Biotechnology vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Liaoning Chengda Bio |
| Contemporary Amperex |
Liaoning Chengda and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Chengda and Contemporary Amperex
The main advantage of trading using opposite Liaoning Chengda and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Chengda 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.| Liaoning Chengda vs. Zhejiang Publishing Media | Liaoning Chengda vs. Jiajia Food Group | Liaoning Chengda vs. Changjiang Publishing Media | Liaoning Chengda vs. Chinese Universe Publishing |
| Contemporary Amperex vs. Malion New Materials | Contemporary Amperex vs. Eastern Communications Co | Contemporary Amperex vs. Guangzhou Tinci Materials | Contemporary Amperex vs. Grinm Advanced Materials |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |