Correlation Between Central Plains and Elite Color
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By analyzing existing cross correlation between Central Plains Environment and Elite Color Environmental, you can compare the effects of market volatilities on Central Plains and Elite Color 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 Central Plains with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Plains and Elite Color.
Diversification Opportunities for Central Plains and Elite Color
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Central and Elite is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Central Plains Environment and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental and Central Plains 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 Central Plains Environment are associated (or correlated) with Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Central Plains i.e., Central Plains and Elite Color go up and down completely randomly.
Pair Corralation between Central Plains and Elite Color
Assuming the 90 days trading horizon Central Plains Environment is expected to generate 0.88 times more return on investment than Elite Color. However, Central Plains Environment is 1.14 times less risky than Elite Color. It trades about 0.04 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.0 per unit of risk. If you would invest 619.00 in Central Plains Environment on October 12, 2024 and sell it today you would earn a total of 206.00 from holding Central Plains Environment or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Plains Environment vs. Elite Color Environmental
Performance |
| Timeline |
| Central Plains Envir |
| Elite Color Environmental |
Central Plains and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Plains and Elite Color
The main advantage of trading using opposite Central Plains and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Plains position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Central Plains vs. Guangdong Liantai Environmental | Central Plains vs. City Development Environment | Central Plains vs. Lingyuan Iron Steel | Central Plains vs. Fujian Nanwang Environment |
| Elite Color vs. Jiangyin Jianghua Microelectronics | Elite Color vs. Semiconductor Manufacturing Electronics | Elite Color vs. TongFu Microelectronics Co | Elite Color vs. Leyard Optoelectronic |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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