Correlation Between Taiji Computer and Elite Color
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By analyzing existing cross correlation between Taiji Computer Corp and Elite Color Environmental, you can compare the effects of market volatilities on Taiji Computer 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 Taiji Computer with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiji Computer and Elite Color.
Diversification Opportunities for Taiji Computer and Elite Color
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taiji and Elite is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Taiji Computer Corp 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 Taiji Computer 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 Taiji Computer Corp 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 Taiji Computer i.e., Taiji Computer and Elite Color go up and down completely randomly.
Pair Corralation between Taiji Computer and Elite Color
Assuming the 90 days trading horizon Taiji Computer Corp is expected to under-perform the Elite Color. In addition to that, Taiji Computer is 1.17 times more volatile than Elite Color Environmental. It trades about -0.06 of its total potential returns per unit of risk. Elite Color Environmental is currently generating about 0.03 per unit of volatility. If you would invest 624.00 in Elite Color Environmental on October 28, 2024 and sell it today you would earn a total of 5.00 from holding Elite Color Environmental or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiji Computer Corp vs. Elite Color Environmental
Performance |
| Timeline |
| Taiji Computer Corp |
| Elite Color Environmental |
Taiji Computer and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiji Computer and Elite Color
The main advantage of trading using opposite Taiji Computer and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiji Computer 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.| Taiji Computer vs. North Copper Shanxi | Taiji Computer vs. Jiangsu Financial Leasing | Taiji Computer vs. Sunny Loan Top | Taiji Computer vs. Citic Guoan Wine |
| Elite Color vs. Runjian Communication Co | Elite Color vs. Union Semiconductor Co | Elite Color vs. Suzhou Oriental Semiconductor | Elite Color vs. Yindu Kitchen Equipment |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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