Correlation Between Elite Color and Tianjin Hi
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By analyzing existing cross correlation between Elite Color Environmental and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Elite Color and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Tianjin Hi.
Diversification Opportunities for Elite Color and Tianjin Hi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elite and Tianjin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Elite Color i.e., Elite Color and Tianjin Hi go up and down completely randomly.
Pair Corralation between Elite Color and Tianjin Hi
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.82 times more return on investment than Tianjin Hi. However, Elite Color Environmental is 1.22 times less risky than Tianjin Hi. It trades about 0.0 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.0 per unit of risk. If you would invest 695.00 in Elite Color Environmental on October 27, 2024 and sell it today you would lose (66.00) from holding Elite Color Environmental or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Elite Color Environmental |
| Tianjin Hi Tech |
Elite Color and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Tianjin Hi
The main advantage of trading using opposite Elite Color and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Elite Color vs. Jointo Energy Investment | Elite Color vs. Northern United Publishing | Elite Color vs. Heilongjiang Publishing Media | Elite Color vs. Tieling Newcity Investment |
| Tianjin Hi vs. Dhc Software Co | Tianjin Hi vs. Shanghai Construction Group | Tianjin Hi vs. Kangping Technology Co | Tianjin Hi vs. XiaMen HongXin Electron tech |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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