Correlation Between Gansu Huangtai and Keda Clean
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Keda Clean Energy, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Keda Clean.
Diversification Opportunities for Gansu Huangtai and Keda Clean
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gansu and Keda is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Keda Clean go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Keda Clean
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 3.15 times more return on investment than Keda Clean. However, Gansu Huangtai is 3.15 times more volatile than Keda Clean Energy. It trades about 0.07 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.16 per unit of risk. If you would invest 1,624 in Gansu Huangtai Wine marketing on October 12, 2024 and sell it today you would earn a total of 78.00 from holding Gansu Huangtai Wine marketing or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Keda Clean Energy
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Keda Clean Energy |
Gansu Huangtai and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Keda Clean
The main advantage of trading using opposite Gansu Huangtai and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Zhongshan Public Utilities | Gansu Huangtai vs. Elite Color Environmental | Gansu Huangtai vs. GreenTech Environmental Co | Gansu Huangtai vs. Xiamen Goldenhome Co |
| Keda Clean vs. INKON Life Technology | Keda Clean vs. HUAQIN TECHNOLOGY LTD | Keda Clean vs. Gansu Huangtai Wine marketing | Keda Clean vs. Easyhome New Retail |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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