Correlation Between Keda Clean and Dongfeng Automobile
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By analyzing existing cross correlation between Keda Clean Energy and Dongfeng Automobile Co, you can compare the effects of market volatilities on Keda Clean and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Dongfeng Automobile.
Diversification Opportunities for Keda Clean and Dongfeng Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Dongfeng is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Keda Clean i.e., Keda Clean and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Keda Clean and Dongfeng Automobile
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Dongfeng Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.22 times less risky than Dongfeng Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Dongfeng Automobile Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Dongfeng Automobile Co on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Dongfeng Automobile Co or generate 15.11% 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. Dongfeng Automobile Co
Performance |
| Timeline |
| Keda Clean Energy |
| Dongfeng Automobile |
Keda Clean and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Dongfeng Automobile
The main advantage of trading using opposite Keda Clean and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile'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 |
| Dongfeng Automobile vs. Hunan Investment Group | Dongfeng Automobile vs. Vanfund Urban Investment | Dongfeng Automobile vs. Shenzhen Centralcon Investment | Dongfeng Automobile vs. Dareway Software 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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