Correlation Between Guangdong Shenglu and Keda Clean
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Keda Clean Energy, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Keda Clean.
Diversification Opportunities for Guangdong Shenglu and Keda Clean
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Keda is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Keda Clean go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Keda Clean
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Keda Clean. In addition to that, Guangdong Shenglu is 2.08 times more volatile than Keda Clean Energy. It trades about -0.22 of its total potential returns per unit of risk. Keda Clean Energy is currently generating about 0.12 per unit of volatility. If you would invest 793.00 in Keda Clean Energy on October 28, 2024 and sell it today you would earn a total of 29.00 from holding Keda Clean Energy or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Keda Clean Energy
Performance |
| Timeline |
| Guangdong Shenglu |
| Keda Clean Energy |
Guangdong Shenglu and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Keda Clean
The main advantage of trading using opposite Guangdong Shenglu and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Bus Online Co | Guangdong Shenglu vs. Holitech Technology Co | Guangdong Shenglu vs. Gome Telecom Equipment | Guangdong Shenglu vs. Cultural Investment Holdings |
| Keda Clean vs. Biwin Storage Technology | Keda Clean vs. Sublime China Information | Keda Clean vs. Ningbo Tip Rubber | Keda Clean vs. Jiangnan Mould Plastic |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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