Correlation Between Shanghai Broadband and Keda Clean
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By analyzing existing cross correlation between Shanghai Broadband Technology and Keda Clean Energy, you can compare the effects of market volatilities on Shanghai Broadband and Keda Clean 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 Shanghai Broadband with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Keda Clean.
Diversification Opportunities for Shanghai Broadband and Keda Clean
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Keda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Keda Clean go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Keda Clean
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.16 times more return on investment than Keda Clean. However, Shanghai Broadband is 1.16 times more volatile than Keda Clean Energy. It trades about 0.52 of its potential returns per unit of risk. Keda Clean Energy is currently generating about 0.07 per unit of risk. If you would invest 319.00 in Shanghai Broadband Technology on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Shanghai Broadband Technology or generate 28.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Keda Clean Energy
Performance |
| Timeline |
| Shanghai Broadband |
| Keda Clean Energy |
Shanghai Broadband and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Keda Clean
The main advantage of trading using opposite Shanghai Broadband and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| Shanghai Broadband vs. Unisplendour Corp | Shanghai Broadband vs. Ningbo Tech Bank Co | Shanghai Broadband vs. Kingsignal Technology Co | Shanghai Broadband vs. ROPEOK Technology Group |
| Keda Clean vs. Zotye Automobile Co | Keda Clean vs. Guangzhou Haige Communications | Keda Clean vs. Eastern Communications Co | Keda Clean vs. Shanghai Broadband Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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