Correlation Between Elite Color and Xiamen Jihong
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By analyzing existing cross correlation between Elite Color Environmental and Xiamen Jihong Package, you can compare the effects of market volatilities on Elite Color and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Xiamen Jihong.
Diversification Opportunities for Elite Color and Xiamen Jihong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Elite Color i.e., Elite Color and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Elite Color and Xiamen Jihong
Assuming the 90 days trading horizon Elite Color is expected to generate 2.62 times less return on investment than Xiamen Jihong. But when comparing it to its historical volatility, Elite Color Environmental is 1.11 times less risky than Xiamen Jihong. It trades about 0.12 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,250 in Xiamen Jihong Package on August 30, 2024 and sell it today you would earn a total of 297.00 from holding Xiamen Jihong Package or generate 23.76% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Elite Color Environmental |
| Xiamen Jihong Package |
Elite Color and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Xiamen Jihong
The main advantage of trading using opposite Elite Color and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Inner Mongolia BaoTou | Elite Color vs. Jiangxi Ganfeng Lithium |
| Xiamen Jihong vs. Shandong Gold Mining | Xiamen Jihong vs. Rongsheng Petrochemical Co | Xiamen Jihong vs. Inner Mongolia BaoTou | Xiamen Jihong vs. Jiangxi Ganfeng Lithium |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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