Correlation Between Keda Clean and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Keda Clean Energy and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Keda Clean and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Fiberhome Telecommunicatio.
Diversification Opportunities for Keda Clean and Fiberhome Telecommunicatio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keda and Fiberhome is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Keda Clean i.e., Keda Clean and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Keda Clean and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.75 times more return on investment than Fiberhome Telecommunicatio. However, Keda Clean Energy is 1.33 times less risky than Fiberhome Telecommunicatio. It trades about 0.05 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.07 per unit of risk. If you would invest 842.00 in Keda Clean Energy on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Keda Clean Energy or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Keda Clean Energy |
| Fiberhome Telecommunicatio |
Keda Clean and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Fiberhome Telecommunicatio
The main advantage of trading using opposite Keda Clean and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Keda Clean vs. Tianjin Pengling Rubber | Keda Clean vs. Hangzhou Gaoxin Rubber | Keda Clean vs. Caihong Display Devices | Keda Clean vs. Suzhou Xingye Material |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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