Correlation Between Elite Color and Fujian Nanwang
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By analyzing existing cross correlation between Elite Color Environmental and Fujian Nanwang Environment, you can compare the effects of market volatilities on Elite Color and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Fujian Nanwang.
Diversification Opportunities for Elite Color and Fujian Nanwang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Elite Color i.e., Elite Color and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Elite Color and Fujian Nanwang
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.8 times more return on investment than Fujian Nanwang. However, Elite Color is 1.8 times more volatile than Fujian Nanwang Environment. It trades about 0.14 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.17 per unit of risk. If you would invest 609.00 in Elite Color Environmental on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Elite Color Environmental or generate 9.85% 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. Fujian Nanwang Environment
Performance |
| Timeline |
| Elite Color Environmental |
| Fujian Nanwang Envir |
Elite Color and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Fujian Nanwang
The main advantage of trading using opposite Elite Color and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang'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 |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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