Correlation Between Elite Color and Tianjin Tianyao
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By analyzing existing cross correlation between Elite Color Environmental and Tianjin Tianyao Pharmaceuticals, you can compare the effects of market volatilities on Elite Color and Tianjin Tianyao 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 Tianyao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Tianjin Tianyao.
Diversification Opportunities for Elite Color and Tianjin Tianyao
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elite and Tianjin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Tianjin Tianyao Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Tianyao Phar 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 Tianyao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Tianyao Phar has no effect on the direction of Elite Color i.e., Elite Color and Tianjin Tianyao go up and down completely randomly.
Pair Corralation between Elite Color and Tianjin Tianyao
Assuming the 90 days trading horizon Elite Color is expected to generate 1.1 times less return on investment than Tianjin Tianyao. In addition to that, Elite Color is 1.26 times more volatile than Tianjin Tianyao Pharmaceuticals. It trades about 0.03 of its total potential returns per unit of risk. Tianjin Tianyao Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest 384.00 in Tianjin Tianyao Pharmaceuticals on November 28, 2024 and sell it today you would earn a total of 38.00 from holding Tianjin Tianyao Pharmaceuticals or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.44% |
| Values | Daily Returns |
Elite Color Environmental vs. Tianjin Tianyao Pharmaceutical
Performance |
| Timeline |
| Elite Color Environmental |
| Tianjin Tianyao Phar |
Elite Color and Tianjin Tianyao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Tianjin Tianyao
The main advantage of trading using opposite Elite Color and Tianjin Tianyao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Tianjin Tianyao 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 Tianyao will offset losses from the drop in Tianjin Tianyao's long position.| Elite Color vs. Aier Eye Hospital | Elite Color vs. China Publishing Media | Elite Color vs. PKU HealthCare Corp | Elite Color vs. Time Publishing and |
| Tianjin Tianyao vs. Tinavi Medical Technologies | Tianjin Tianyao vs. Guangzhou Haozhi Industrial | Tianjin Tianyao vs. Guangdong Transtek Medical | Tianjin Tianyao vs. Yoantion Industrial IncLtd |
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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