Correlation Between Keda Clean and HeBei Jinniu
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By analyzing existing cross correlation between Keda Clean Energy and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Keda Clean and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and HeBei Jinniu.
Diversification Opportunities for Keda Clean and HeBei Jinniu
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keda and HeBei is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Keda Clean i.e., Keda Clean and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Keda Clean and HeBei Jinniu
Assuming the 90 days trading horizon Keda Clean is expected to generate 6.6 times less return on investment than HeBei Jinniu. But when comparing it to its historical volatility, Keda Clean Energy is 2.42 times less risky than HeBei Jinniu. It trades about 0.03 of its potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 530.00 in HeBei Jinniu Chemical on October 18, 2024 and sell it today you would earn a total of 28.00 from holding HeBei Jinniu Chemical or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Keda Clean Energy |
| HeBei Jinniu Chemical |
Keda Clean and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and HeBei Jinniu
The main advantage of trading using opposite Keda Clean and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Keda Clean vs. Xiangyang Automobile Bearing | Keda Clean vs. ButOne Information Corp | Keda Clean vs. Fibocom Wireless | Keda Clean vs. Hangzhou Gisway Information |
| HeBei Jinniu vs. Chengdu Xingrong Investment | HeBei Jinniu vs. Chengdu Xinzhu RoadBridge | HeBei Jinniu vs. Hainan Haiqi Transportation | HeBei Jinniu vs. Jointo Energy Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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