Correlation Between Xizi Clean and Contemporary Amperex
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By analyzing existing cross correlation between Xizi Clean Energy and Contemporary Amperex Technology, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Contemporary Amperex.
Diversification Opportunities for Xizi Clean and Contemporary Amperex
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xizi and Contemporary is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Xizi Clean and Contemporary Amperex
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Contemporary Amperex. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.29 times less risky than Contemporary Amperex. The stock trades about -0.13 of its potential returns per unit of risk. The Contemporary Amperex Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Xizi Clean Energy vs. Contemporary Amperex Technolog
Performance |
Timeline |
Xizi Clean Energy |
Contemporary Amperex |
Xizi Clean and Contemporary Amperex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xizi Clean and Contemporary Amperex
The main advantage of trading using opposite Xizi Clean and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.Xizi Clean vs. Bank of China | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Bank of Communications |
Contemporary Amperex vs. Xizi Clean Energy | Contemporary Amperex vs. Threes Company Media | Contemporary Amperex vs. Tonghua Grape Wine | Contemporary Amperex vs. Sportsoul Co Ltd |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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