Correlation Between Elite Color and Shenzhen
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By analyzing existing cross correlation between Elite Color Environmental and Shenzhen AV Display Co, you can compare the effects of market volatilities on Elite Color and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Shenzhen.
Diversification Opportunities for Elite Color and Shenzhen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Elite Color i.e., Elite Color and Shenzhen go up and down completely randomly.
Pair Corralation between Elite Color and Shenzhen
Assuming the 90 days trading horizon Elite Color is expected to generate 2.76 times less return on investment than Shenzhen. But when comparing it to its historical volatility, Elite Color Environmental is 1.59 times less risky than Shenzhen. It trades about 0.02 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,607 in Shenzhen AV Display Co on September 13, 2024 and sell it today you would earn a total of 821.00 from holding Shenzhen AV Display Co or generate 31.49% 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. Shenzhen AV Display Co
Performance |
| Timeline |
| Elite Color Environmental |
| Shenzhen AV Display |
Elite Color and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Shenzhen
The main advantage of trading using opposite Elite Color and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Elite Color vs. Anhui Jianghuai Automobile | Elite Color vs. Songz Automobile Air | Elite Color vs. Sinomach Automobile Co | Elite Color vs. Pengxin International Mining |
| Shenzhen vs. Industrial and Commercial | Shenzhen vs. Agricultural Bank of | Shenzhen vs. China Construction Bank | Shenzhen vs. Bank of China |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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