Correlation Between CBAK Energy and Ads Tec
Can any of the company-specific risk be diversified away by investing in both CBAK Energy and Ads Tec 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 CBAK Energy and Ads Tec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBAK Energy Technology and Ads Tec Energy, you can compare the effects of market volatilities on CBAK Energy and Ads Tec 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 CBAK Energy with a short position of Ads Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBAK Energy and Ads Tec.
Diversification Opportunities for CBAK Energy and Ads Tec
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CBAK and Ads is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CBAK Energy Technology and Ads Tec Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ads Tec Energy and CBAK Energy 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 CBAK Energy Technology are associated (or correlated) with Ads Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ads Tec Energy has no effect on the direction of CBAK Energy i.e., CBAK Energy and Ads Tec go up and down completely randomly.
Pair Corralation between CBAK Energy and Ads Tec
Given the investment horizon of 90 days CBAK Energy is expected to generate 9.62 times less return on investment than Ads Tec. In addition to that, CBAK Energy is 1.07 times more volatile than Ads Tec Energy. It trades about 0.01 of its total potential returns per unit of risk. Ads Tec Energy is currently generating about 0.08 per unit of volatility. If you would invest 394.00 in Ads Tec Energy on September 3, 2024 and sell it today you would earn a total of 1,016 from holding Ads Tec Energy or generate 257.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBAK Energy Technology vs. Ads Tec Energy
Performance |
| Timeline |
| CBAK Energy Technology |
| Ads Tec Energy |
CBAK Energy and Ads Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBAK Energy and Ads Tec
The main advantage of trading using opposite CBAK Energy and Ads Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBAK Energy position performs unexpectedly, Ads Tec 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 Ads Tec will offset losses from the drop in Ads Tec's long position.| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
| Ads Tec vs. Espey Mfg Electronics | Ads Tec vs. NeoVolta Warrant | Ads Tec vs. Kimball Electronics | Ads Tec vs. Hayward Holdings |
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.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |