Correlation Between Contemporary Amperex and CITIC Securities
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By analyzing existing cross correlation between Contemporary Amperex Technology and CITIC Securities Co, you can compare the effects of market volatilities on Contemporary Amperex and CITIC Securities 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 CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and CITIC Securities.
Diversification Opportunities for Contemporary Amperex and CITIC Securities
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contemporary and CITIC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities 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 CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Contemporary Amperex i.e., Contemporary Amperex and CITIC Securities go up and down completely randomly.
Pair Corralation between Contemporary Amperex and CITIC Securities
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 1.17 times less return on investment than CITIC Securities. In addition to that, Contemporary Amperex is 1.23 times more volatile than CITIC Securities Co. It trades about 0.13 of its total potential returns per unit of risk. CITIC Securities Co is currently generating about 0.18 per unit of volatility. If you would invest 2,116 in CITIC Securities Co on September 25, 2024 and sell it today you would earn a total of 876.00 from holding CITIC Securities Co or generate 41.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Contemporary Amperex Technolog vs. CITIC Securities Co
Performance |
Timeline |
Contemporary Amperex |
CITIC Securities |
Contemporary Amperex and CITIC Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contemporary Amperex and CITIC Securities
The main advantage of trading using opposite Contemporary Amperex and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex position performs unexpectedly, CITIC Securities 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 CITIC Securities will offset losses from the drop in CITIC Securities' 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 |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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