Correlation Between Sinomach Automobile and Elite Color
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By analyzing existing cross correlation between Sinomach Automobile Co and Elite Color Environmental, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Elite Color.
Diversification Opportunities for Sinomach Automobile and Elite Color
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Elite is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile i.e., Sinomach Automobile and Elite Color go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Elite Color
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 2.15 times less return on investment than Elite Color. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.3 times less risky than Elite Color. It trades about 0.1 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 585.00 in Elite Color Environmental on September 13, 2024 and sell it today you would earn a total of 104.00 from holding Elite Color Environmental or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Elite Color Environmental
Performance |
| Timeline |
| Sinomach Automobile |
| Elite Color Environmental |
Sinomach Automobile and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Elite Color
The main advantage of trading using opposite Sinomach Automobile and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
| Elite Color vs. Anhui Jianghuai Automobile | Elite Color vs. Songz Automobile Air | Elite Color vs. Sinomach Automobile Co | Elite Color vs. Pengxin International Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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