Correlation Between Amprius Technologies and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Amprius Technologies and CBAK Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amprius Technologies and CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amprius Technologies and CBAK Energy Technology, you can compare the effects of market volatilities on Amprius Technologies and CBAK Energy 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 Amprius Technologies with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amprius Technologies and CBAK Energy.
Diversification Opportunities for Amprius Technologies and CBAK Energy
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amprius and CBAK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amprius Technologies and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Amprius Technologies 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 Amprius Technologies are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Amprius Technologies i.e., Amprius Technologies and CBAK Energy go up and down completely randomly.
Pair Corralation between Amprius Technologies and CBAK Energy
Given the investment horizon of 90 days Amprius Technologies is expected to under-perform the CBAK Energy. In addition to that, Amprius Technologies is 1.65 times more volatile than CBAK Energy Technology. It trades about -0.01 of its total potential returns per unit of risk. CBAK Energy Technology is currently generating about 0.01 per unit of volatility. If you would invest 116.00 in CBAK Energy Technology on August 28, 2024 and sell it today you would lose (26.00) from holding CBAK Energy Technology or give up 22.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amprius Technologies vs. CBAK Energy Technology
Performance |
| Timeline |
| Amprius Technologies |
| CBAK Energy Technology |
Amprius Technologies and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amprius Technologies and CBAK Energy
The main advantage of trading using opposite Amprius Technologies and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amprius Technologies position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Amprius Technologies vs. Eos Energy Enterprises | Amprius Technologies vs. FREYR Battery SA | Amprius Technologies vs. Microvast Holdings | Amprius Technologies vs. Chardan NexTech Acquisition |
| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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