Correlation Between Keda Clean and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Keda Clean Energy and China Securities 800, you can compare the effects of market volatilities on Keda Clean and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and China Securities.
Diversification Opportunities for Keda Clean and China Securities
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Keda Clean i.e., Keda Clean and China Securities go up and down completely randomly.
Pair Corralation between Keda Clean and China Securities
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the China Securities. In addition to that, Keda Clean is 1.57 times more volatile than China Securities 800. It trades about -0.14 of its total potential returns per unit of risk. China Securities 800 is currently generating about 0.17 per unit of volatility. If you would invest 414,387 in China Securities 800 on September 27, 2024 and sell it today you would earn a total of 14,462 from holding China Securities 800 or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Keda Clean Energy vs. China Securities 800
Performance |
| Timeline |
Keda Clean and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Keda Clean Energy
Pair trading matchups for Keda Clean
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Keda Clean and China Securities
The main advantage of trading using opposite Keda Clean and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Keda Clean vs. Hengli Industrial Development | Keda Clean vs. Zhejiang Yayi Metal | Keda Clean vs. Maccura Biotechnology Co | Keda Clean vs. Wuhan Hvsen Biotechnology |
| China Securities vs. Zhongshan Public Utilities | China Securities vs. Jiangsu GDK Biotechnology | China Securities vs. Sichuan Hebang Biotechnology | China Securities vs. Sunny Loan Top |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |