Correlation Between Keda Clean and New China
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By analyzing existing cross correlation between Keda Clean Energy and New China Life, you can compare the effects of market volatilities on Keda Clean and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and New China.
Diversification Opportunities for Keda Clean and New China
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and New is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Keda Clean i.e., Keda Clean and New China go up and down completely randomly.
Pair Corralation between Keda Clean and New China
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.56 times more return on investment than New China. However, Keda Clean Energy is 1.78 times less risky than New China. It trades about 0.1 of its potential returns per unit of risk. New China Life is currently generating about 0.01 per unit of risk. If you would invest 824.00 in Keda Clean Energy on September 2, 2024 and sell it today you would earn a total of 32.00 from holding Keda Clean Energy or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. New China Life
Performance |
| Timeline |
| Keda Clean Energy |
| New China Life |
Keda Clean and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and New China
The main advantage of trading using opposite Keda Clean and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Keda Clean vs. New China Life | Keda Clean vs. Ming Yang Smart | Keda Clean vs. 159681 | Keda Clean vs. 159005 |
| New China vs. Xinjiang Communications Construction | New China vs. JCHX Mining Management | New China vs. Chengtun Mining Group | New China vs. Pengxin International Mining |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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