Correlation Between Keda Clean and Shengda Mining
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By analyzing existing cross correlation between Keda Clean Energy and Shengda Mining Co, you can compare the effects of market volatilities on Keda Clean and Shengda Mining 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 Keda Clean with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Shengda Mining.
Diversification Opportunities for Keda Clean and Shengda Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Keda and Shengda is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Keda Clean 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 Keda Clean Energy are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Keda Clean i.e., Keda Clean and Shengda Mining go up and down completely randomly.
Pair Corralation between Keda Clean and Shengda Mining
Assuming the 90 days trading horizon Keda Clean is expected to generate 1.52 times less return on investment than Shengda Mining. In addition to that, Keda Clean is 1.02 times more volatile than Shengda Mining Co. It trades about 0.08 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.12 per unit of volatility. If you would invest 1,008 in Shengda Mining Co on October 18, 2024 and sell it today you would earn a total of 259.00 from holding Shengda Mining Co or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.75% |
| Values | Daily Returns |
Keda Clean Energy vs. Shengda Mining Co
Performance |
| Timeline |
| Keda Clean Energy |
| Shengda Mining |
Keda Clean and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Shengda Mining
The main advantage of trading using opposite Keda Clean and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Keda Clean vs. Xiangyang Automobile Bearing | Keda Clean vs. ButOne Information Corp | Keda Clean vs. Fibocom Wireless | Keda Clean vs. Hangzhou Gisway Information |
| Shengda Mining vs. Hangzhou Minsheng Healthcare | Shengda Mining vs. Lotus Health Group | Shengda Mining vs. Ningxia Building Materials | Shengda Mining vs. Keda Clean Energy |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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