Correlation Between Shenyang Blue and Elite Color
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By analyzing existing cross correlation between Shenyang Blue Silver and Elite Color Environmental, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Elite Color.
Diversification Opportunities for Shenyang Blue and Elite Color
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenyang and Elite is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Elite Color go up and down completely randomly.
Pair Corralation between Shenyang Blue and Elite Color
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 1.82 times more return on investment than Elite Color. However, Shenyang Blue is 1.82 times more volatile than Elite Color Environmental. It trades about 0.06 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 1,463 in Shenyang Blue Silver on October 16, 2024 and sell it today you would earn a total of 733.00 from holding Shenyang Blue Silver or generate 50.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Elite Color Environmental
Performance |
| Timeline |
| Shenyang Blue Silver |
| Elite Color Environmental |
Shenyang Blue and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Elite Color
The main advantage of trading using opposite Shenyang Blue and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Jiangxi Hengda Hi Tech | Shenyang Blue vs. Runjian Communication Co | Shenyang Blue vs. Guangzhou Haige Communications | Shenyang Blue vs. Shantui Construction Machinery |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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