Correlation Between Elite Color and GKHT Medical
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By analyzing existing cross correlation between Elite Color Environmental and GKHT Medical Technology, you can compare the effects of market volatilities on Elite Color and GKHT Medical 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 GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and GKHT Medical.
Diversification Opportunities for Elite Color and GKHT Medical
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elite and GKHT is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical Technology 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 GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of Elite Color i.e., Elite Color and GKHT Medical go up and down completely randomly.
Pair Corralation between Elite Color and GKHT Medical
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.62 times more return on investment than GKHT Medical. However, Elite Color Environmental is 1.61 times less risky than GKHT Medical. It trades about 0.0 of its potential returns per unit of risk. GKHT Medical Technology is currently generating about -0.05 per unit of risk. If you would invest 667.00 in Elite Color Environmental on October 16, 2024 and sell it today you would lose (86.00) from holding Elite Color Environmental or give up 12.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.78% |
| Values | Daily Returns |
Elite Color Environmental vs. GKHT Medical Technology
Performance |
| Timeline |
| Elite Color Environmental |
| GKHT Medical Technology |
Elite Color and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and GKHT Medical
The main advantage of trading using opposite Elite Color and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, GKHT Medical 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 GKHT Medical will offset losses from the drop in GKHT Medical's long position.| Elite Color vs. Guangdong Silvere Sci | Elite Color vs. Zijin Mining Group | Elite Color vs. Shenyang Blue Silver | Elite Color vs. Jinhui Mining Co |
| GKHT Medical vs. Shanghai V Test Semiconductor | GKHT Medical vs. Baoshan Iron Steel | GKHT Medical vs. Elite Color Environmental | GKHT Medical vs. Hangzhou Guotai Environmental |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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