Correlation Between Keda Clean and Weihai Guangwei
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By analyzing existing cross correlation between Keda Clean Energy and Weihai Guangwei Composites, you can compare the effects of market volatilities on Keda Clean and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Weihai Guangwei.
Diversification Opportunities for Keda Clean and Weihai Guangwei
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Weihai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Keda Clean i.e., Keda Clean and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Keda Clean and Weihai Guangwei
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Weihai Guangwei. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.25 times less risky than Weihai Guangwei. The stock trades about -0.04 of its potential returns per unit of risk. The Weihai Guangwei Composites is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,414 in Weihai Guangwei Composites on September 3, 2024 and sell it today you would lose (952.00) from holding Weihai Guangwei Composites or give up 21.57% 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. Weihai Guangwei Composites
Performance |
| Timeline |
| Keda Clean Energy |
| Weihai Guangwei Comp |
Keda Clean and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Weihai Guangwei
The main advantage of trading using opposite Keda Clean and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei'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 |
| Weihai Guangwei vs. Shandong Homey Aquatic | Weihai Guangwei vs. Xinhua Winshare Publishing | Weihai Guangwei vs. Luolai Home Textile | Weihai Guangwei vs. Changjiang Publishing Media |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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