Correlation Between Ningbo Jintian and Keda Clean
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By analyzing existing cross correlation between Ningbo Jintian Copper and Keda Clean Energy, you can compare the effects of market volatilities on Ningbo Jintian 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 Ningbo Jintian with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Keda Clean.
Diversification Opportunities for Ningbo Jintian and Keda Clean
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Keda is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper 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 Ningbo Jintian 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 Ningbo Jintian Copper 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 Ningbo Jintian i.e., Ningbo Jintian and Keda Clean go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Keda Clean
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to generate 0.85 times more return on investment than Keda Clean. However, Ningbo Jintian Copper is 1.17 times less risky than Keda Clean. It trades about -0.01 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 699.00 in Ningbo Jintian Copper on September 3, 2024 and sell it today you would lose (101.00) from holding Ningbo Jintian Copper or give up 14.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Keda Clean Energy
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Keda Clean Energy |
Ningbo Jintian and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Keda Clean
The main advantage of trading using opposite Ningbo Jintian and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian 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.| Ningbo Jintian vs. Jinhe Biotechnology Co | Ningbo Jintian vs. Kangping Technology Co | Ningbo Jintian vs. HUAQIN TECHNOLOGY LTD | Ningbo Jintian vs. Guangdong Liantai Environmental |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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