Correlation Between Guangdong Shenglu and Elite Color
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Elite Color Environmental, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Elite Color.
Diversification Opportunities for Guangdong Shenglu and Elite Color
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Elite is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Elite Color go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Elite Color
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Elite Color. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.01 times less risky than Elite Color. The stock trades about -0.01 of its potential returns per unit of risk. The Elite Color Environmental is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 628.00 in Elite Color Environmental on August 29, 2024 and sell it today you would earn a total of 60.00 from holding Elite Color Environmental or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Elite Color Environmental
Performance |
| Timeline |
| Guangdong Shenglu |
| Elite Color Environmental |
Guangdong Shenglu and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Elite Color
The main advantage of trading using opposite Guangdong Shenglu and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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