Correlation Between Fuda Alloy and Keda Clean
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By analyzing existing cross correlation between Fuda Alloy Materials and Keda Clean Energy, you can compare the effects of market volatilities on Fuda Alloy 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 Fuda Alloy with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Keda Clean.
Diversification Opportunities for Fuda Alloy and Keda Clean
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fuda and Keda is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials 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 Fuda Alloy 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 Fuda Alloy Materials 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 Fuda Alloy i.e., Fuda Alloy and Keda Clean go up and down completely randomly.
Pair Corralation between Fuda Alloy and Keda Clean
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 2.38 times more return on investment than Keda Clean. However, Fuda Alloy is 2.38 times more volatile than Keda Clean Energy. It trades about 0.23 of its potential returns per unit of risk. Keda Clean Energy is currently generating about 0.12 per unit of risk. If you would invest 1,305 in Fuda Alloy Materials on October 28, 2024 and sell it today you would earn a total of 228.00 from holding Fuda Alloy Materials or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Keda Clean Energy
Performance |
| Timeline |
| Fuda Alloy Materials |
| Keda Clean Energy |
Fuda Alloy and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Keda Clean
The main advantage of trading using opposite Fuda Alloy and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy 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.| Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. China Construction Bank | Fuda Alloy vs. Bank of China | Fuda Alloy vs. Agricultural Bank of |
| Keda Clean vs. Biwin Storage Technology | Keda Clean vs. Sublime China Information | Keda Clean vs. Ningbo Tip Rubber | Keda Clean vs. Jiangnan Mould Plastic |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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