Correlation Between Northern United and Keda Clean
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By analyzing existing cross correlation between Northern United Publishing and Keda Clean Energy, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Keda Clean.
Diversification Opportunities for Northern United and Keda Clean
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Northern and Keda is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Keda Clean go up and down completely randomly.
Pair Corralation between Northern United and Keda Clean
Assuming the 90 days trading horizon Northern United Publishing is expected to under-perform the Keda Clean. In addition to that, Northern United is 1.29 times more volatile than Keda Clean Energy. It trades about -0.1 of its total potential returns per unit of risk. Keda Clean Energy is currently generating about -0.06 per unit of volatility. If you would invest 798.00 in Keda Clean Energy on December 1, 2024 and sell it today you would lose (14.00) from holding Keda Clean Energy or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Keda Clean Energy
Performance |
| Timeline |
| Northern United Publ |
| Keda Clean Energy |
Northern United and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Keda Clean
The main advantage of trading using opposite Northern United and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. BTG Hotels Group | Northern United vs. Nantong Haixing Electronics | Northern United vs. Sunny Loan Top | Northern United vs. Hengyi Petrochemical Co |
| Keda Clean vs. Xinjiang Beixin RoadBridge | Keda Clean vs. Ping An Insurance | Keda Clean vs. Jiangsu Broadcasting Cable | Keda Clean vs. Hubeiyichang Transportation Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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