Correlation Between Elite Color and Jiangxi JDL
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By analyzing existing cross correlation between Elite Color Environmental and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Elite Color and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Jiangxi JDL.
Diversification Opportunities for Elite Color and Jiangxi JDL
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elite and Jiangxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Elite Color i.e., Elite Color and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Elite Color and Jiangxi JDL
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.11 times more return on investment than Jiangxi JDL. However, Elite Color is 1.11 times more volatile than Jiangxi JDL Environmental. It trades about 0.0 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.0 per unit of risk. If you would invest 732.00 in Elite Color Environmental on September 3, 2024 and sell it today you would lose (57.00) from holding Elite Color Environmental or give up 7.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Elite Color Environmental |
| Jiangxi JDL Environmental |
Elite Color and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Jiangxi JDL
The main advantage of trading using opposite Elite Color and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Hoshine Silicon Ind |
| Jiangxi JDL vs. Cultural Investment Holdings | Jiangxi JDL vs. Gome Telecom Equipment | Jiangxi JDL vs. Bus Online Co | Jiangxi JDL vs. Holitech Technology 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 Stocks Directory module to find actively traded stocks across global markets.
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