Correlation Between Elite Color and Guangdong Shenglu
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By analyzing existing cross correlation between Elite Color Environmental and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Elite Color and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Guangdong Shenglu.
Diversification Opportunities for Elite Color and Guangdong Shenglu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Elite Color i.e., Elite Color and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Elite Color and Guangdong Shenglu
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.01 times more return on investment than Guangdong Shenglu. However, Elite Color is 1.01 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.14 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 per unit of risk. 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 |
Elite Color Environmental vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Elite Color Environmental |
| Guangdong Shenglu |
Elite Color and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Guangdong Shenglu
The main advantage of trading using opposite Elite Color and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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