Correlation Between Hengli Industrial and Keda Clean
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Keda Clean Energy, you can compare the effects of market volatilities on Hengli Industrial and Keda Clean 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 Hengli Industrial with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Keda Clean.
Diversification Opportunities for Hengli Industrial and Keda Clean
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengli and Keda is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Keda Clean go up and down completely randomly.
Pair Corralation between Hengli Industrial and Keda Clean
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Keda Clean. In addition to that, Hengli Industrial is 1.87 times more volatile than Keda Clean Energy. It trades about -0.34 of its total potential returns per unit of risk. Keda Clean Energy is currently generating about -0.14 per unit of volatility. If you would invest 819.00 in Keda Clean Energy on September 27, 2024 and sell it today you would lose (37.00) from holding Keda Clean Energy or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Keda Clean Energy
Performance |
| Timeline |
| Hengli Industrial |
| Keda Clean Energy |
Hengli Industrial and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Keda Clean
The main advantage of trading using opposite Hengli Industrial and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| Hengli Industrial vs. China Life Insurance | Hengli Industrial vs. Cinda Securities Co | Hengli Industrial vs. Piotech Inc A | Hengli Industrial vs. Dongxing Sec Co |
| Keda Clean vs. Hengli Industrial Development | Keda Clean vs. Zhejiang Yayi Metal | Keda Clean vs. Maccura Biotechnology Co | Keda Clean vs. Wuhan Hvsen 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |