Correlation Between Elite Color and GreenTech Environmental
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By analyzing existing cross correlation between Elite Color Environmental and GreenTech Environmental Co, you can compare the effects of market volatilities on Elite Color and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and GreenTech Environmental.
Diversification Opportunities for Elite Color and GreenTech Environmental
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elite and GreenTech is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Elite Color i.e., Elite Color and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Elite Color and GreenTech Environmental
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 0.83 times more return on investment than GreenTech Environmental. However, Elite Color Environmental is 1.21 times less risky than GreenTech Environmental. It trades about 0.05 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about -0.03 per unit of risk. If you would invest 646.00 in Elite Color Environmental on January 28, 2025 and sell it today you would earn a total of 27.00 from holding Elite Color Environmental or generate 4.18% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Elite Color Environmental |
| GreenTech Environmental |
Elite Color and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and GreenTech Environmental
The main advantage of trading using opposite Elite Color and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Elite Color vs. Shandong Mining Machinery | Elite Color vs. Hua Xia Bank | Elite Color vs. Shengda Mining Co | Elite Color vs. Ping An Insurance |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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