Correlation Between Elite Color and Jiugui Liquor
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By analyzing existing cross correlation between Elite Color Environmental and Jiugui Liquor Co, you can compare the effects of market volatilities on Elite Color and Jiugui Liquor 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 Elite Color with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Jiugui Liquor.
Diversification Opportunities for Elite Color and Jiugui Liquor
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Jiugui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Elite Color 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 Elite Color Environmental are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Elite Color i.e., Elite Color and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Elite Color and Jiugui Liquor
Assuming the 90 days trading horizon Elite Color is expected to generate 1.32 times less return on investment than Jiugui Liquor. But when comparing it to its historical volatility, Elite Color Environmental is 1.04 times less risky than Jiugui Liquor. It trades about 0.14 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,170 in Jiugui Liquor Co on August 31, 2024 and sell it today you would earn a total of 699.00 from holding Jiugui Liquor Co or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Jiugui Liquor Co
Performance |
| Timeline |
| Elite Color Environmental |
| Jiugui Liquor |
Elite Color and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Jiugui Liquor
The main advantage of trading using opposite Elite Color and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Hoshine Silicon Ind |
| Jiugui Liquor vs. Sichuan Fulin Transportation | Jiugui Liquor vs. China Asset Management | Jiugui Liquor vs. Sanbo Hospital Management | Jiugui Liquor vs. Northern United Publishing |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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