Correlation Between Keda Clean and Shandong Ruifeng
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By analyzing existing cross correlation between Keda Clean Energy and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Keda Clean and Shandong Ruifeng 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 Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Shandong Ruifeng.
Diversification Opportunities for Keda Clean and Shandong Ruifeng
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keda and Shandong is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Keda Clean i.e., Keda Clean and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Keda Clean and Shandong Ruifeng
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.84 times more return on investment than Shandong Ruifeng. However, Keda Clean Energy is 1.19 times less risky than Shandong Ruifeng. It trades about 0.23 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about 0.1 per unit of risk. If you would invest 768.00 in Keda Clean Energy on November 4, 2024 and sell it today you would earn a total of 42.00 from holding Keda Clean Energy or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Keda Clean Energy |
| Shandong Ruifeng Chemical |
Keda Clean and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Shandong Ruifeng
The main advantage of trading using opposite Keda Clean and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Shandong Ruifeng 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 Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.| Keda Clean vs. Agricultural Bank of | Keda Clean vs. Industrial and Commercial | Keda Clean vs. Bank of China | Keda Clean vs. PetroChina Co Ltd |
| Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Wanhua Chemical Group | Shandong Ruifeng vs. Baoshan Iron Steel | Shandong Ruifeng 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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