Correlation Between Elite Color and Wanhua Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Elite Color Environmental and Wanhua Chemical Group, you can compare the effects of market volatilities on Elite Color and Wanhua Chemical 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 Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Wanhua Chemical.
Diversification Opportunities for Elite Color and Wanhua Chemical
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elite and Wanhua is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group 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 Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Elite Color i.e., Elite Color and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Elite Color and Wanhua Chemical
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.64 times more return on investment than Wanhua Chemical. However, Elite Color Environmental is 1.56 times less risky than Wanhua Chemical. It trades about 0.15 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.01 per unit of risk. If you would invest 629.00 in Elite Color Environmental on November 27, 2024 and sell it today you would earn a total of 16.00 from holding Elite Color Environmental or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Wanhua Chemical Group
Performance |
| Timeline |
| Elite Color Environmental |
| Wanhua Chemical Group |
Elite Color and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Wanhua Chemical
The main advantage of trading using opposite Elite Color and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| Elite Color vs. Allied Machinery Co | Elite Color vs. New Hope Dairy | Elite Color vs. Huasi Agricultural Development | Elite Color vs. Ningbo Daye Garden |
| Wanhua Chemical vs. Anhui Huaheng Biotechnology | Wanhua Chemical vs. Zhangjiagang Freetrade Science | Wanhua Chemical vs. Fujian Wanchen Biotechnology | Wanhua Chemical vs. JCHX Mining Management |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |