Correlation Between Keda Clean and Jiangsu Hoperun
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By analyzing existing cross correlation between Keda Clean Energy and Jiangsu Hoperun Software, you can compare the effects of market volatilities on Keda Clean and Jiangsu Hoperun 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 Jiangsu Hoperun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Jiangsu Hoperun.
Diversification Opportunities for Keda Clean and Jiangsu Hoperun
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keda and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Jiangsu Hoperun Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Hoperun Software 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 Jiangsu Hoperun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Hoperun Software has no effect on the direction of Keda Clean i.e., Keda Clean and Jiangsu Hoperun go up and down completely randomly.
Pair Corralation between Keda Clean and Jiangsu Hoperun
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Jiangsu Hoperun. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 2.06 times less risky than Jiangsu Hoperun. The stock trades about -0.02 of its potential returns per unit of risk. The Jiangsu Hoperun Software is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,760 in Jiangsu Hoperun Software on September 14, 2024 and sell it today you would earn a total of 3,492 from holding Jiangsu Hoperun Software or generate 126.52% 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. Jiangsu Hoperun Software
Performance |
| Timeline |
| Keda Clean Energy |
| Jiangsu Hoperun Software |
Keda Clean and Jiangsu Hoperun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Jiangsu Hoperun
The main advantage of trading using opposite Keda Clean and Jiangsu Hoperun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Jiangsu Hoperun 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 Jiangsu Hoperun will offset losses from the drop in Jiangsu Hoperun's long position.| Keda Clean vs. Industrial and Commercial | Keda Clean vs. Kweichow Moutai Co | Keda Clean vs. Agricultural Bank of | Keda Clean vs. China Mobile Limited |
| Jiangsu Hoperun vs. Ligao Foods CoLtd | Jiangsu Hoperun vs. Peoples Insurance of | Jiangsu Hoperun vs. Guangdong Wens Foodstuff | Jiangsu Hoperun vs. Eastroc Beverage Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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