Correlation Between Elite Color and Asia Potash
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By analyzing existing cross correlation between Elite Color Environmental and Asia Potash International, you can compare the effects of market volatilities on Elite Color and Asia Potash 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 Asia Potash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Asia Potash.
Diversification Opportunities for Elite Color and Asia Potash
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Asia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Asia Potash International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Potash International 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 Asia Potash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Potash International has no effect on the direction of Elite Color i.e., Elite Color and Asia Potash go up and down completely randomly.
Pair Corralation between Elite Color and Asia Potash
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.95 times more return on investment than Asia Potash. However, Elite Color Environmental is 1.06 times less risky than Asia Potash. It trades about 0.01 of its potential returns per unit of risk. Asia Potash International is currently generating about -0.01 per unit of risk. If you would invest 666.00 in Elite Color Environmental on September 5, 2024 and sell it today you would earn a total of 23.00 from holding Elite Color Environmental or generate 3.45% 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. Asia Potash International
Performance |
| Timeline |
| Elite Color Environmental |
| Asia Potash International |
Elite Color and Asia Potash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Asia Potash
The main advantage of trading using opposite Elite Color and Asia Potash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Asia Potash 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 Asia Potash will offset losses from the drop in Asia Potash's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Shandong Gold Mining |
| Asia Potash vs. Elite Color Environmental | Asia Potash vs. Nexchip Semiconductor Corp | Asia Potash vs. Vontron Technology Co | Asia Potash vs. Sinocat Environmental Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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