Correlation Between Elite Color and Jilin OLED
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By analyzing existing cross correlation between Elite Color Environmental and Jilin OLED Material, you can compare the effects of market volatilities on Elite Color and Jilin OLED 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 Jilin OLED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Jilin OLED.
Diversification Opportunities for Elite Color and Jilin OLED
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elite and Jilin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Jilin OLED Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin OLED Material 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 Jilin OLED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin OLED Material has no effect on the direction of Elite Color i.e., Elite Color and Jilin OLED go up and down completely randomly.
Pair Corralation between Elite Color and Jilin OLED
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.81 times more return on investment than Jilin OLED. However, Elite Color Environmental is 1.23 times less risky than Jilin OLED. It trades about -0.03 of its potential returns per unit of risk. Jilin OLED Material is currently generating about -0.12 per unit of risk. If you would invest 633.00 in Elite Color Environmental on October 12, 2024 and sell it today you would lose (36.00) from holding Elite Color Environmental or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Elite Color Environmental vs. Jilin OLED Material
Performance |
| Timeline |
| Elite Color Environmental |
| Jilin OLED Material |
Elite Color and Jilin OLED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Jilin OLED
The main advantage of trading using opposite Elite Color and Jilin OLED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Jilin OLED 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 Jilin OLED will offset losses from the drop in Jilin OLED's long position.| Elite Color vs. Jiangyin Jianghua Microelectronics | Elite Color vs. Semiconductor Manufacturing Electronics | Elite Color vs. TongFu Microelectronics Co | Elite Color vs. Leyard Optoelectronic |
| Jilin OLED vs. Elite Color Environmental | Jilin OLED vs. Zhongshan Broad Ocean Motor | Jilin OLED vs. Xinjiang Beixin RoadBridge | Jilin OLED vs. Lingyuan Iron Steel |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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