Correlation Between Elite Color and Taiji Computer
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By analyzing existing cross correlation between Elite Color Environmental and Taiji Computer Corp, you can compare the effects of market volatilities on Elite Color and Taiji Computer 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 Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Taiji Computer.
Diversification Opportunities for Elite Color and Taiji Computer
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elite and Taiji is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp 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 Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Elite Color i.e., Elite Color and Taiji Computer go up and down completely randomly.
Pair Corralation between Elite Color and Taiji Computer
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.74 times more return on investment than Taiji Computer. However, Elite Color Environmental is 1.35 times less risky than Taiji Computer. It trades about 0.01 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.03 per unit of risk. If you would invest 649.00 in Elite Color Environmental on November 6, 2024 and sell it today you would lose (20.00) from holding Elite Color Environmental or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Taiji Computer Corp
Performance |
| Timeline |
| Elite Color Environmental |
| Taiji Computer Corp |
Elite Color and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Taiji Computer
The main advantage of trading using opposite Elite Color and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Wanhua Chemical Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining |
| Taiji Computer vs. Beijing Kingsoft Office | Taiji Computer vs. Anhui Shiny Electronic | Taiji Computer vs. Xinya Electronic Co | Taiji Computer vs. Epoxy Base Electronic |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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