Correlation Between Zhongtong Guomai and Keda Clean
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Keda Clean Energy, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Keda Clean.
Diversification Opportunities for Zhongtong Guomai and Keda Clean
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Keda is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Keda Clean go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Keda Clean
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.57 times more return on investment than Keda Clean. However, Zhongtong Guomai is 1.57 times more volatile than Keda Clean Energy. It trades about 0.02 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 1,108 in Zhongtong Guomai Communication on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Zhongtong Guomai Communication or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Keda Clean Energy
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Keda Clean Energy |
Zhongtong Guomai and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Keda Clean
The main advantage of trading using opposite Zhongtong Guomai and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
| Keda Clean vs. Eastern Communications Co | Keda Clean vs. Zhongtong Guomai Communication | Keda Clean vs. China Railway Construction | Keda Clean vs. Sinomach Automobile Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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