Correlation Between Keda Clean and Guangxi Wuzhou
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By analyzing existing cross correlation between Keda Clean Energy and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Keda Clean and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Guangxi Wuzhou.
Diversification Opportunities for Keda Clean and Guangxi Wuzhou
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keda and Guangxi is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Keda Clean i.e., Keda Clean and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Keda Clean and Guangxi Wuzhou
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Guangxi Wuzhou. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 3.29 times less risky than Guangxi Wuzhou. The stock trades about -0.16 of its potential returns per unit of risk. The Guangxi Wuzhou Communications is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 405.00 in Guangxi Wuzhou Communications on October 12, 2024 and sell it today you would earn a total of 30.00 from holding Guangxi Wuzhou Communications or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Keda Clean Energy |
| Guangxi Wuzhou Commu |
Keda Clean and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Guangxi Wuzhou
The main advantage of trading using opposite Keda Clean and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Keda Clean vs. INKON Life Technology | Keda Clean vs. HUAQIN TECHNOLOGY LTD | Keda Clean vs. Gansu Huangtai Wine marketing | Keda Clean vs. Easyhome New Retail |
| Guangxi Wuzhou vs. Telling Telecommunication Holding | Guangxi Wuzhou vs. Fujian Oriental Silver | Guangxi Wuzhou vs. Quectel Wireless Solutions | Guangxi Wuzhou vs. Allwin Telecommunication 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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