Correlation Between Keda Clean and Xizi Clean
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By analyzing existing cross correlation between Keda Clean Energy and Xizi Clean Energy, you can compare the effects of market volatilities on Keda Clean and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Xizi Clean.
Diversification Opportunities for Keda Clean and Xizi Clean
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Xizi is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Keda Clean i.e., Keda Clean and Xizi Clean go up and down completely randomly.
Pair Corralation between Keda Clean and Xizi Clean
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Xizi Clean. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.3 times less risky than Xizi Clean. The stock trades about -0.04 of its potential returns per unit of risk. The Xizi Clean Energy is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,506 in Xizi Clean Energy on September 3, 2024 and sell it today you would lose (305.00) from holding Xizi Clean Energy or give up 20.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Xizi Clean Energy
Performance |
| Timeline |
| Keda Clean Energy |
| Xizi Clean Energy |
Keda Clean and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Xizi Clean
The main advantage of trading using opposite Keda Clean and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean'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 |
| Xizi Clean vs. Cultural Investment Holdings | Xizi Clean vs. Gome Telecom Equipment | Xizi Clean vs. Bus Online Co | Xizi Clean 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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