Correlation Between Keda Clean and Shenzhen
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By analyzing existing cross correlation between Keda Clean Energy and Shenzhen AV Display Co, you can compare the effects of market volatilities on Keda Clean and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Shenzhen.
Diversification Opportunities for Keda Clean and Shenzhen
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Keda and Shenzhen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Keda Clean i.e., Keda Clean and Shenzhen go up and down completely randomly.
Pair Corralation between Keda Clean and Shenzhen
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.51 times more return on investment than Shenzhen. However, Keda Clean Energy is 1.97 times less risky than Shenzhen. It trades about -0.12 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.15 per unit of risk. If you would invest 848.00 in Keda Clean Energy on October 11, 2024 and sell it today you would lose (37.00) from holding Keda Clean Energy or give up 4.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Keda Clean Energy |
| Shenzhen AV Display |
Keda Clean and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Shenzhen
The main advantage of trading using opposite Keda Clean and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Keda Clean vs. Shanghai Newtouch Software | Keda Clean vs. Digiwin Software Co | Keda Clean vs. Northern United Publishing | Keda Clean vs. Glodon Software Co |
| Shenzhen vs. Keda Clean Energy | Shenzhen vs. Healthcare Co | Shenzhen vs. PKU HealthCare Corp | Shenzhen vs. Nuode Investment Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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