Correlation Between Keda Clean and Shandong Mining
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By analyzing existing cross correlation between Keda Clean Energy and Shandong Mining Machinery, you can compare the effects of market volatilities on Keda Clean and Shandong 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Shandong Mining.
Diversification Opportunities for Keda Clean and Shandong Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Shandong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Keda Clean i.e., Keda Clean and Shandong Mining go up and down completely randomly.
Pair Corralation between Keda Clean and Shandong Mining
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Shandong Mining. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.32 times less risky than Shandong Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Shandong Mining Machinery is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Shandong Mining Machinery on September 3, 2024 and sell it today you would earn a total of 128.00 from holding Shandong Mining Machinery or generate 55.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Shandong Mining Machinery
Performance |
| Timeline |
| Keda Clean Energy |
| Shandong Mining Machinery |
Keda Clean and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Shandong Mining
The main advantage of trading using opposite Keda Clean and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Shandong 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Keda Clean vs. Zotye Automobile Co | Keda Clean vs. Guangzhou Haige Communications | Keda Clean vs. Eastern Communications Co | Keda Clean vs. Shanghai Broadband Technology |
| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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