Correlation Between Keda Clean and Jiangxi Hengda
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By analyzing existing cross correlation between Keda Clean Energy and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Keda Clean and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Jiangxi Hengda.
Diversification Opportunities for Keda Clean and Jiangxi Hengda
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keda and Jiangxi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Keda Clean i.e., Keda Clean and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Keda Clean and Jiangxi Hengda
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.42 times more return on investment than Jiangxi Hengda. However, Keda Clean Energy is 2.36 times less risky than Jiangxi Hengda. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.01 per unit of risk. If you would invest 800.00 in Keda Clean Energy on October 30, 2024 and sell it today you would earn a total of 10.00 from holding Keda Clean Energy or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Keda Clean Energy |
| Jiangxi Hengda Hi |
Keda Clean and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Jiangxi Hengda
The main advantage of trading using opposite Keda Clean and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Keda Clean vs. City Development Environment | Keda Clean vs. Wuhan Hvsen Biotechnology | Keda Clean vs. Eit Environmental Development | Keda Clean vs. Shandong Iron and |
| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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