Correlation Between Elite Color and Luyin Investment
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By analyzing existing cross correlation between Elite Color Environmental and Luyin Investment Group, you can compare the effects of market volatilities on Elite Color and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Luyin Investment.
Diversification Opportunities for Elite Color and Luyin Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elite and Luyin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Elite Color i.e., Elite Color and Luyin Investment go up and down completely randomly.
Pair Corralation between Elite Color and Luyin Investment
Assuming the 90 days trading horizon Elite Color Environmental is expected to under-perform the Luyin Investment. In addition to that, Elite Color is 1.21 times more volatile than Luyin Investment Group. It trades about -0.05 of its total potential returns per unit of risk. Luyin Investment Group is currently generating about 0.03 per unit of volatility. If you would invest 608.00 in Luyin Investment Group on October 22, 2024 and sell it today you would earn a total of 11.00 from holding Luyin Investment Group or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Elite Color Environmental vs. Luyin Investment Group
Performance |
| Timeline |
| Elite Color Environmental |
| Luyin Investment |
Elite Color and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Luyin Investment
The main advantage of trading using opposite Elite Color and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Elite Color vs. Tianjin Ruixin Technology | Elite Color vs. Penyao Environmental Protection | Elite Color vs. Sinocat Environmental Technology | Elite Color vs. Dhc Software Co |
| Luyin Investment vs. Qiaoyin Environmental Tech | Luyin Investment vs. Elite Color Environmental | Luyin Investment vs. Jiangsu GDK Biotechnology | Luyin Investment vs. Angang Steel Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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