Correlation Between Jiaozuo Wanfang and Elite Color
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Elite Color Environmental, you can compare the effects of market volatilities on Jiaozuo Wanfang 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 Jiaozuo Wanfang with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Elite Color.
Diversification Opportunities for Jiaozuo Wanfang and Elite Color
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiaozuo and Elite is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum 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 Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum 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 Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Elite Color go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Elite Color
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 0.79 times more return on investment than Elite Color. However, Jiaozuo Wanfang Aluminum is 1.26 times less risky than Elite Color. It trades about -0.11 of its potential returns per unit of risk. Elite Color Environmental is currently generating about -0.21 per unit of risk. If you would invest 716.00 in Jiaozuo Wanfang Aluminum on October 12, 2024 and sell it today you would lose (37.00) from holding Jiaozuo Wanfang Aluminum or give up 5.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Elite Color Environmental
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Elite Color Environmental |
Jiaozuo Wanfang and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Elite Color
The main advantage of trading using opposite Jiaozuo Wanfang and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang 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.| Jiaozuo Wanfang vs. Tongyu Communication | Jiaozuo Wanfang vs. Wuhan Yangtze Communication | Jiaozuo Wanfang vs. Shenzhen Kexin Communication | Jiaozuo Wanfang vs. Mingchen Health Co |
| Elite Color vs. China Aluminum International | Elite Color vs. Jiaozuo Wanfang Aluminum | Elite Color vs. Kangxin New Materials | Elite Color vs. Western Metal Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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