Correlation Between Elite Color and Zhejiang Yayi
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By analyzing existing cross correlation between Elite Color Environmental and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Elite Color and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Zhejiang Yayi.
Diversification Opportunities for Elite Color and Zhejiang Yayi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Zhejiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Elite Color i.e., Elite Color and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Elite Color and Zhejiang Yayi
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.9 times more return on investment than Zhejiang Yayi. However, Elite Color Environmental is 1.11 times less risky than Zhejiang Yayi. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.01 per unit of risk. If you would invest 630.00 in Elite Color Environmental on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Elite Color Environmental or generate 7.14% 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Elite Color Environmental |
| Zhejiang Yayi Metal |
Elite Color and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Zhejiang Yayi
The main advantage of trading using opposite Elite Color and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Hoshine Silicon Ind |
| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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