Correlation Between Keda Clean and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Keda Clean Energy and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Keda Clean and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Beijing HuaYuanYiTong.
Diversification Opportunities for Keda Clean and Beijing HuaYuanYiTong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Keda Clean i.e., Keda Clean and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Keda Clean and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Keda Clean is expected to generate 1.51 times less return on investment than Beijing HuaYuanYiTong. But when comparing it to its historical volatility, Keda Clean Energy is 1.74 times less risky than Beijing HuaYuanYiTong. It trades about 0.05 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,151 in Beijing HuaYuanYiTong Thermal on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Beijing HuaYuanYiTong Thermal or generate 1.82% 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. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Keda Clean Energy |
| Beijing HuaYuanYiTong |
Keda Clean and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Beijing HuaYuanYiTong
The main advantage of trading using opposite Keda Clean and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Keda Clean vs. Tianjin Pengling Rubber | Keda Clean vs. Hangzhou Gaoxin Rubber | Keda Clean vs. Caihong Display Devices | Keda Clean vs. Suzhou Xingye Material |
| Beijing HuaYuanYiTong vs. Industrial and Commercial | Beijing HuaYuanYiTong vs. Agricultural Bank of | Beijing HuaYuanYiTong vs. China Construction Bank | Beijing HuaYuanYiTong vs. Bank of China |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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