Correlation Between Keda Clean and NBTM New
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By analyzing existing cross correlation between Keda Clean Energy and NBTM New Materials, you can compare the effects of market volatilities on Keda Clean and NBTM New 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 NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and NBTM New.
Diversification Opportunities for Keda Clean and NBTM New
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Keda and NBTM is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials 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 NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Keda Clean i.e., Keda Clean and NBTM New go up and down completely randomly.
Pair Corralation between Keda Clean and NBTM New
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the NBTM New. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.6 times less risky than NBTM New. The stock trades about -0.04 of its potential returns per unit of risk. The NBTM New Materials is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,731 in NBTM New Materials on September 30, 2024 and sell it today you would lose (25.00) from holding NBTM New Materials or give up 1.44% 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. NBTM New Materials
Performance |
| Timeline |
| Keda Clean Energy |
| NBTM New Materials |
Keda Clean and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and NBTM New
The main advantage of trading using opposite Keda Clean and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| Keda Clean vs. Bank of China | Keda Clean vs. Kweichow Moutai Co | Keda Clean vs. PetroChina Co Ltd | Keda Clean vs. Bank of Communications |
| NBTM New vs. Strait Innovation Internet | NBTM New vs. State Grid InformationCommunication | NBTM New vs. Shenzhen Bioeasy Biotechnology | NBTM New vs. Wuhan Hvsen Biotechnology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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