Correlation Between Keda Clean and Xiangyang Automobile
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By analyzing existing cross correlation between Keda Clean Energy and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Keda Clean and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Xiangyang Automobile.
Diversification Opportunities for Keda Clean and Xiangyang Automobile
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Keda and Xiangyang is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Keda Clean i.e., Keda Clean and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Keda Clean and Xiangyang Automobile
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.38 times more return on investment than Xiangyang Automobile. However, Keda Clean Energy is 2.61 times less risky than Xiangyang Automobile. It trades about 0.1 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.07 per unit of risk. If you would invest 800.00 in Keda Clean Energy on October 29, 2024 and sell it today you would earn a total of 22.00 from holding Keda Clean Energy or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Keda Clean Energy |
| Xiangyang Automobile |
Keda Clean and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Xiangyang Automobile
The main advantage of trading using opposite Keda Clean and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Keda Clean vs. Strait Innovation Internet | Keda Clean vs. Beijing Seeyon Internet | Keda Clean vs. Jilin Jlu Communication | Keda Clean vs. Healthcare Co |
| Xiangyang Automobile vs. Guangzhou Jinyi Media | Xiangyang Automobile vs. Duzhe Publishing Media | Xiangyang Automobile vs. Shanghai Xinhua Media | Xiangyang Automobile vs. Beijing YanDong MicroElectronic |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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