Correlation Between China Railway and Keda Clean
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By analyzing existing cross correlation between China Railway Construction and Keda Clean Energy, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Keda Clean.
Diversification Opportunities for China Railway and Keda Clean
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Keda is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction 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 China Railway 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 China Railway Construction 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 China Railway i.e., China Railway and Keda Clean go up and down completely randomly.
Pair Corralation between China Railway and Keda Clean
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.96 times more return on investment than Keda Clean. However, China Railway Construction is 1.04 times less risky than Keda Clean. It trades about 0.04 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 380.00 in China Railway Construction on September 12, 2024 and sell it today you would earn a total of 102.00 from holding China Railway Construction or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Keda Clean Energy
Performance |
| Timeline |
| China Railway Constr |
| Keda Clean Energy |
China Railway and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Keda Clean
The main advantage of trading using opposite China Railway and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Agricultural Bank of | China Railway vs. Industrial and Commercial | China Railway vs. Bank of China | China Railway vs. PetroChina Co Ltd |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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