Correlation Between Keda Clean and Leaguer Shenzhen
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By analyzing existing cross correlation between Keda Clean Energy and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Keda Clean and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Leaguer Shenzhen.
Diversification Opportunities for Keda Clean and Leaguer Shenzhen
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Leaguer is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Keda Clean i.e., Keda Clean and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Keda Clean and Leaguer Shenzhen
Assuming the 90 days trading horizon Keda Clean Energy is expected to generate 0.8 times more return on investment than Leaguer Shenzhen. However, Keda Clean Energy is 1.25 times less risky than Leaguer Shenzhen. It trades about -0.04 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about -0.03 per unit of risk. If you would invest 866.00 in Keda Clean Energy on September 13, 2024 and sell it today you would lose (18.00) from holding Keda Clean Energy or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Keda Clean Energy |
| Leaguer Shenzhen Mic |
Keda Clean and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Leaguer Shenzhen
The main advantage of trading using opposite Keda Clean and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Keda Clean vs. JuneYao Dairy Co | Keda Clean vs. Namchow Food Group | Keda Clean vs. Youyou Foods Co | Keda Clean vs. Beijing Sanyuan Foods |
| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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