Correlation Between Fujian Newland and Elite Color
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By analyzing existing cross correlation between Fujian Newland Computer and Elite Color Environmental, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Elite Color.
Diversification Opportunities for Fujian Newland and Elite Color
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Elite is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer 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 Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Elite Color go up and down completely randomly.
Pair Corralation between Fujian Newland and Elite Color
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 1.19 times more return on investment than Elite Color. However, Fujian Newland is 1.19 times more volatile than Elite Color Environmental. It trades about 0.17 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.14 per unit of risk. If you would invest 1,877 in Fujian Newland Computer on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Fujian Newland Computer or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Elite Color Environmental
Performance |
| Timeline |
| Fujian Newland Computer |
| Elite Color Environmental |
Fujian Newland and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Elite Color
The main advantage of trading using opposite Fujian Newland and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159681 | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology |
| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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