Correlation Between Keda Clean and Jiangsu Xinri
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By analyzing existing cross correlation between Keda Clean Energy and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Keda Clean and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Jiangsu Xinri.
Diversification Opportunities for Keda Clean and Jiangsu Xinri
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keda and Jiangsu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Keda Clean i.e., Keda Clean and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Keda Clean and Jiangsu Xinri
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Jiangsu Xinri. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.31 times less risky than Jiangsu Xinri. The stock trades about -0.06 of its potential returns per unit of risk. The Jiangsu Xinri E Vehicle is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,900 in Jiangsu Xinri E Vehicle on October 16, 2024 and sell it today you would lose (919.00) from holding Jiangsu Xinri E Vehicle or give up 48.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Keda Clean Energy |
| Jiangsu Xinri E |
Keda Clean and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Jiangsu Xinri
The main advantage of trading using opposite Keda Clean and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Keda Clean vs. Iat Automobile Technology | Keda Clean vs. Universal Scientific Industrial | Keda Clean vs. Dongfeng Automobile Co | Keda Clean vs. Eastern Air Logistics |
| Jiangsu Xinri vs. Kingclean Electric Co | Jiangsu Xinri vs. Orinko Advanced Plastics | Jiangsu Xinri vs. Western Metal Materials | Jiangsu Xinri vs. Keda Clean Energy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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