Correlation Between Zhejiang Juhua and Elite Color
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By analyzing existing cross correlation between Zhejiang Juhua Co and Elite Color Environmental, you can compare the effects of market volatilities on Zhejiang Juhua 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 Zhejiang Juhua with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Elite Color.
Diversification Opportunities for Zhejiang Juhua and Elite Color
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Elite is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co 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 Zhejiang Juhua 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 Zhejiang Juhua Co 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 Zhejiang Juhua i.e., Zhejiang Juhua and Elite Color go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Elite Color
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 0.98 times more return on investment than Elite Color. However, Zhejiang Juhua Co is 1.02 times less risky than Elite Color. It trades about 0.06 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.0 per unit of risk. If you would invest 1,555 in Zhejiang Juhua Co on August 29, 2024 and sell it today you would earn a total of 674.00 from holding Zhejiang Juhua Co or generate 43.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Elite Color Environmental
Performance |
| Timeline |
| Zhejiang Juhua |
| Elite Color Environmental |
Zhejiang Juhua and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Elite Color
The main advantage of trading using opposite Zhejiang Juhua and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua 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.| Zhejiang Juhua vs. Uxi Unicomp Technology | Zhejiang Juhua vs. Hunan Investment Group | Zhejiang Juhua vs. Harbin Hatou Investment | Zhejiang Juhua vs. Tieling Newcity Investment |
| Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Inner Mongolia BaoTou | Elite Color vs. Jiangxi Ganfeng Lithium |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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