Correlation Between Keda Clean and Sichuan Tianqi
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By analyzing existing cross correlation between Keda Clean Energy and Sichuan Tianqi Lithium, you can compare the effects of market volatilities on Keda Clean and Sichuan Tianqi 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 Sichuan Tianqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Sichuan Tianqi.
Diversification Opportunities for Keda Clean and Sichuan Tianqi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keda and Sichuan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Sichuan Tianqi Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Tianqi Lithium 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 Sichuan Tianqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Tianqi Lithium has no effect on the direction of Keda Clean i.e., Keda Clean and Sichuan Tianqi go up and down completely randomly.
Pair Corralation between Keda Clean and Sichuan Tianqi
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.58 times more return on investment than Sichuan Tianqi. However, Keda Clean Energy is 1.72 times less risky than Sichuan Tianqi. It trades about -0.04 of its potential returns per unit of risk. Sichuan Tianqi Lithium is currently generating about -0.14 per unit of risk. If you would invest 866.00 in Keda Clean Energy on September 13, 2024 and sell it today you would lose (18.00) from holding Keda Clean Energy or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Keda Clean Energy vs. Sichuan Tianqi Lithium
Performance |
| Timeline |
| Keda Clean Energy |
| Sichuan Tianqi Lithium |
Keda Clean and Sichuan Tianqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Sichuan Tianqi
The main advantage of trading using opposite Keda Clean and Sichuan Tianqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Sichuan Tianqi 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 Sichuan Tianqi will offset losses from the drop in Sichuan Tianqi's long position.| Keda Clean vs. JuneYao Dairy Co | Keda Clean vs. Namchow Food Group | Keda Clean vs. Youyou Foods Co | Keda Clean vs. Beijing Sanyuan Foods |
| Sichuan Tianqi vs. Keda Clean Energy | Sichuan Tianqi vs. Servyou Software Group | Sichuan Tianqi vs. Zoje Resources Investment | Sichuan Tianqi vs. China Asset Management |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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