Correlation Between Elite Color and China Minmetals
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By analyzing existing cross correlation between Elite Color Environmental and China Minmetals Rare, you can compare the effects of market volatilities on Elite Color and China Minmetals 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 China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and China Minmetals.
Diversification Opportunities for Elite Color and China Minmetals
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elite and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare 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 China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Elite Color i.e., Elite Color and China Minmetals go up and down completely randomly.
Pair Corralation between Elite Color and China Minmetals
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.86 times more return on investment than China Minmetals. However, Elite Color Environmental is 1.16 times less risky than China Minmetals. It trades about 0.14 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.06 per unit of risk. If you would invest 609.00 in Elite Color Environmental on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Elite Color Environmental or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. China Minmetals Rare
Performance |
| Timeline |
| Elite Color Environmental |
| China Minmetals Rare |
Elite Color and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and China Minmetals
The main advantage of trading using opposite Elite Color and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' 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 |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co | China Minmetals vs. Hoshine Silicon Ind |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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