Correlation Between China Minmetals and Elite Color
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Minmetals Rare and Elite Color Environmental, you can compare the effects of market volatilities on China Minmetals 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 China Minmetals with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Elite Color.
Diversification Opportunities for China Minmetals and Elite Color
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Elite is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare 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 China Minmetals 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 Minmetals Rare 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 China Minmetals i.e., China Minmetals and Elite Color go up and down completely randomly.
Pair Corralation between China Minmetals and Elite Color
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the Elite Color. But the stock apears to be less risky and, when comparing its historical volatility, China Minmetals Rare is 1.06 times less risky than Elite Color. The stock trades about -0.1 of its potential returns per unit of risk. The Elite Color Environmental is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 604.00 in Elite Color Environmental on September 2, 2024 and sell it today you would earn a total of 71.00 from holding Elite Color Environmental or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Elite Color Environmental
Performance |
| Timeline |
| China Minmetals Rare |
| Elite Color Environmental |
China Minmetals and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Elite Color
The main advantage of trading using opposite China Minmetals and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals 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.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
| Elite Color vs. TVZone Media Co | Elite Color vs. Lander Sports Development | Elite Color vs. Shenzhen Bioeasy Biotechnology | Elite Color vs. Wuhan Hvsen Biotechnology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |