Correlation Between Keda Clean and Northern United
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By analyzing existing cross correlation between Keda Clean Energy and Northern United Publishing, you can compare the effects of market volatilities on Keda Clean and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Northern United.
Diversification Opportunities for Keda Clean and Northern United
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keda and Northern is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Keda Clean i.e., Keda Clean and Northern United go up and down completely randomly.
Pair Corralation between Keda Clean and Northern United
Assuming the 90 days trading horizon Keda Clean is expected to generate 3.82 times less return on investment than Northern United. But when comparing it to its historical volatility, Keda Clean Energy is 1.23 times less risky than Northern United. It trades about 0.05 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 646.00 in Northern United Publishing on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Northern United Publishing or generate 7.59% 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. Northern United Publishing
Performance |
| Timeline |
| Keda Clean Energy |
| Northern United Publ |
Keda Clean and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Northern United
The main advantage of trading using opposite Keda Clean and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United'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 |
| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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