Correlation Between Keda Clean and Qingdao Port
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By analyzing existing cross correlation between Keda Clean Energy and Qingdao Port International, you can compare the effects of market volatilities on Keda Clean and Qingdao Port 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 Qingdao Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Qingdao Port.
Diversification Opportunities for Keda Clean and Qingdao Port
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keda and Qingdao is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Qingdao Port International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Port Interna 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 Qingdao Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Port Interna has no effect on the direction of Keda Clean i.e., Keda Clean and Qingdao Port go up and down completely randomly.
Pair Corralation between Keda Clean and Qingdao Port
Assuming the 90 days trading horizon Keda Clean is expected to generate 4.88 times less return on investment than Qingdao Port. In addition to that, Keda Clean is 1.93 times more volatile than Qingdao Port International. It trades about 0.02 of its total potential returns per unit of risk. Qingdao Port International is currently generating about 0.17 per unit of volatility. If you would invest 833.00 in Qingdao Port International on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Qingdao Port International or generate 4.2% 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. Qingdao Port International
Performance |
| Timeline |
| Keda Clean Energy |
| Qingdao Port Interna |
Keda Clean and Qingdao Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Qingdao Port
The main advantage of trading using opposite Keda Clean and Qingdao Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Qingdao Port 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 Qingdao Port will offset losses from the drop in Qingdao Port's long position.| Keda Clean vs. PetroChina Co Ltd | Keda Clean vs. China State Construction | Keda Clean vs. China Mobile Limited | Keda Clean vs. Industrial and Commercial |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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