Correlation Between Guangdong Silvere and Elite Color
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By analyzing existing cross correlation between Guangdong Silvere Sci and Elite Color Environmental, you can compare the effects of market volatilities on Guangdong Silvere and Elite Color 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 Guangdong Silvere with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Elite Color.
Diversification Opportunities for Guangdong Silvere and Elite Color
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Elite is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental and Guangdong Silvere 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 Guangdong Silvere Sci are associated (or correlated) with Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Elite Color go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Elite Color
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.39 times more return on investment than Elite Color. However, Guangdong Silvere is 1.39 times more volatile than Elite Color Environmental. It trades about 0.01 of its potential returns per unit of risk. Elite Color Environmental is currently generating about -0.03 per unit of risk. If you would invest 592.00 in Guangdong Silvere Sci on October 16, 2024 and sell it today you would lose (56.00) from holding Guangdong Silvere Sci or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Elite Color Environmental
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Elite Color Environmental |
Guangdong Silvere and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Elite Color
The main advantage of trading using opposite Guangdong Silvere and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Guangdong Silvere vs. Liaoning Dingjide Petrochemical | Guangdong Silvere vs. Guizhou Chanhen Chemical | Guangdong Silvere vs. Hunan Mendale Hometextile | Guangdong Silvere vs. Dosilicon Co |
| Elite Color vs. Guangdong Silvere Sci | Elite Color vs. Zijin Mining Group | Elite Color vs. Shenyang Blue Silver | Elite Color vs. Jinhui Mining 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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