Correlation Between Contemporary Amperex and Gotion High
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By analyzing existing cross correlation between Contemporary Amperex Technology and Gotion High tech, you can compare the effects of market volatilities on Contemporary Amperex and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and Gotion High.
Diversification Opportunities for Contemporary Amperex and Gotion High
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contemporary and Gotion is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and Gotion High go up and down completely randomly.
Pair Corralation between Contemporary Amperex and Gotion High
Assuming the 90 days trading horizon Contemporary Amperex Technology is expected to generate 1.15 times more return on investment than Gotion High. However, Contemporary Amperex is 1.15 times more volatile than Gotion High tech. It trades about 0.0 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.36 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 | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Contemporary Amperex Technolog vs. Gotion High tech
Performance |
Timeline |
Contemporary Amperex |
Gotion High tech |
Contemporary Amperex and Gotion High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contemporary Amperex and Gotion High
The main advantage of trading using opposite Contemporary Amperex and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High'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 |
Gotion High vs. Kweichow Moutai Co | Gotion High vs. Contemporary Amperex Technology | Gotion High vs. G bits Network Technology | Gotion High vs. BYD 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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