Correlation Between Eastern Communications and Contemporary Amperex
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By analyzing existing cross correlation between Eastern Communications Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Contemporary Amperex.
Diversification Opportunities for Eastern Communications and Contemporary Amperex
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Contemporary is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications 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 Eastern Communications 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 Eastern Communications 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 Eastern Communications i.e., Eastern Communications and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Eastern Communications and Contemporary Amperex
Assuming the 90 days trading horizon Eastern Communications is expected to generate 1.5 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Eastern Communications Co is 1.54 times less risky than Contemporary Amperex. It trades about 0.16 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 18,119 in Contemporary Amperex Technology on August 31, 2024 and sell it today you would earn a total of 7,351 from holding Contemporary Amperex Technology or generate 40.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Eastern Communications |
| Contemporary Amperex |
Eastern Communications and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Contemporary Amperex
The main advantage of trading using opposite Eastern Communications and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Kweichow Moutai Co | Eastern Communications vs. NAURA Technology Group | Eastern Communications vs. APT Medical | Eastern Communications vs. Contemporary Amperex Technology |
| Contemporary Amperex vs. Easyhome New Retail | Contemporary Amperex vs. Orinko Advanced Plastics | Contemporary Amperex vs. Malion New Materials | Contemporary Amperex vs. Jinsanjiang Silicon Material |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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