Correlation Between Elite Color and China World
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By analyzing existing cross correlation between Elite Color Environmental and China World Trade, you can compare the effects of market volatilities on Elite Color and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and China World.
Diversification Opportunities for Elite Color and China World
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elite and China is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Elite Color i.e., Elite Color and China World go up and down completely randomly.
Pair Corralation between Elite Color and China World
Assuming the 90 days trading horizon Elite Color is expected to generate 10.46 times less return on investment than China World. In addition to that, Elite Color is 1.33 times more volatile than China World Trade. It trades about 0.0 of its total potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of volatility. If you would invest 1,558 in China World Trade on September 3, 2024 and sell it today you would earn a total of 688.00 from holding China World Trade or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. China World Trade
Performance |
| Timeline |
| Elite Color Environmental |
| China World Trade |
Elite Color and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and China World
The main advantage of trading using opposite Elite Color and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, China World 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 China World will offset losses from the drop in China World'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 |
| China World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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