Correlation Between Elite Color and Sunny Loan
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By analyzing existing cross correlation between Elite Color Environmental and Sunny Loan Top, you can compare the effects of market volatilities on Elite Color and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Sunny Loan.
Diversification Opportunities for Elite Color and Sunny Loan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elite and Sunny is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Elite Color i.e., Elite Color and Sunny Loan go up and down completely randomly.
Pair Corralation between Elite Color and Sunny Loan
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.03 times more return on investment than Sunny Loan. However, Elite Color is 1.03 times more volatile than Sunny Loan Top. It trades about 0.14 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.11 per unit of risk. If you would invest 619.00 in Elite Color Environmental on September 1, 2024 and sell it today you would earn a total of 56.00 from holding Elite Color Environmental or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Sunny Loan Top
Performance |
| Timeline |
| Elite Color Environmental |
| Sunny Loan Top |
Elite Color and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Sunny Loan
The main advantage of trading using opposite Elite Color and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co |
| Sunny Loan vs. Elite Color Environmental | Sunny Loan vs. Shenzhen MYS Environmental | Sunny Loan vs. Chengtun Mining Group | Sunny Loan vs. Ye Chiu Metal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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