Correlation Between Elite Color and Shanghai Phichem
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By analyzing existing cross correlation between Elite Color Environmental and Shanghai Phichem Material, you can compare the effects of market volatilities on Elite Color and Shanghai Phichem 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 Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Shanghai Phichem.
Diversification Opportunities for Elite Color and Shanghai Phichem
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elite and Shanghai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material 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 Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of Elite Color i.e., Elite Color and Shanghai Phichem go up and down completely randomly.
Pair Corralation between Elite Color and Shanghai Phichem
If you would invest 599.00 in Elite Color Environmental on November 8, 2024 and sell it today you would earn a total of 36.00 from holding Elite Color Environmental or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Elite Color Environmental vs. Shanghai Phichem Material
Performance |
| Timeline |
| Elite Color Environmental |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Shanghai Phichem Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elite Color and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Shanghai Phichem
The main advantage of trading using opposite Elite Color and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Shanghai Phichem 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 Shanghai Phichem will offset losses from the drop in Shanghai Phichem's long position.The idea behind Elite Color Environmental and Shanghai Phichem Material pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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