Correlation Between Anhui Jianghuai and Elite Color
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Elite Color Environmental, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Elite Color.
Diversification Opportunities for Anhui Jianghuai and Elite Color
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Elite is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile 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 Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Elite Color go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Elite Color
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Elite Color. In addition to that, Anhui Jianghuai is 1.25 times more volatile than Elite Color Environmental. It trades about -0.15 of its total potential returns per unit of risk. Elite Color Environmental is currently generating about 0.11 per unit of volatility. If you would invest 642.00 in Elite Color Environmental on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Elite Color Environmental or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Elite Color Environmental
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Elite Color Environmental |
Anhui Jianghuai and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Elite Color
The main advantage of trading using opposite Anhui Jianghuai and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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