Correlation Between Contemporary Amperex and China Enterprise
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By analyzing existing cross correlation between Contemporary Amperex Technology and China Enterprise Co, you can compare the effects of market volatilities on Contemporary Amperex and China Enterprise 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 Contemporary Amperex with a short position of China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and China Enterprise.
Diversification Opportunities for Contemporary Amperex and China Enterprise
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contemporary and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise and Contemporary Amperex 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 Contemporary Amperex Technology are associated (or correlated) with China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and China Enterprise go up and down completely randomly.
Pair Corralation between Contemporary Amperex and China Enterprise
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 0.6 times more return on investment than China Enterprise. However, Contemporary Amperex Technology is 1.65 times less risky than China Enterprise. It trades about 0.0 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.02 per unit of risk. If you would invest 26,410 in Contemporary Amperex Technology on September 25, 2024 and sell it today you would lose (60.00) from holding Contemporary Amperex Technology or give up 0.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Contemporary Amperex Technolog vs. China Enterprise Co
Performance |
Timeline |
Contemporary Amperex |
China Enterprise |
Contemporary Amperex and China Enterprise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contemporary Amperex and China Enterprise
The main advantage of trading using opposite Contemporary Amperex and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.Contemporary Amperex vs. Xizi Clean Energy | Contemporary Amperex vs. Threes Company Media | Contemporary Amperex vs. Tonghua Grape Wine | Contemporary Amperex vs. Sportsoul Co Ltd |
China Enterprise vs. Guangdong Marubi Biotechnology | China Enterprise vs. Ningbo MedicalSystem Biotechnology | China Enterprise vs. Jinling Hotel Corp | China Enterprise vs. Shanghai Rendu Biotechnology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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