Correlation Between Shandong Publishing and Keda Clean
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By analyzing existing cross correlation between Shandong Publishing Media and Keda Clean Energy, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Keda Clean.
Diversification Opportunities for Shandong Publishing and Keda Clean
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Keda is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media 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 Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and Keda Clean go up and down completely randomly.
Pair Corralation between Shandong Publishing and Keda Clean
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.2 times more return on investment than Keda Clean. However, Shandong Publishing is 1.2 times more volatile than Keda Clean Energy. It trades about 0.06 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.04 per unit of risk. If you would invest 612.00 in Shandong Publishing Media on September 3, 2024 and sell it today you would earn a total of 453.00 from holding Shandong Publishing Media or generate 74.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Keda Clean Energy
Performance |
| Timeline |
| Shandong Publishing Media |
| Keda Clean Energy |
Shandong Publishing and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Keda Clean
The main advantage of trading using opposite Shandong Publishing and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.| Shandong Publishing vs. Gansu Jiu Steel | Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. Aba Chemicals Corp | Shandong Publishing vs. Loctek Ergonomic Technology |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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