Correlation Between Jonjee Hi-tech and Elite Color
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Elite Color Environmental, you can compare the effects of market volatilities on Jonjee Hi-tech 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 Jonjee Hi-tech with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi-tech and Elite Color.
Diversification Opportunities for Jonjee Hi-tech and Elite Color
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jonjee and Elite is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial 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 Jonjee Hi-tech 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 Jonjee Hi tech Industrial 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 Jonjee Hi-tech i.e., Jonjee Hi-tech and Elite Color go up and down completely randomly.
Pair Corralation between Jonjee Hi-tech and Elite Color
Assuming the 90 days trading horizon Jonjee Hi-tech is expected to generate 2.02 times less return on investment than Elite Color. But when comparing it to its historical volatility, Jonjee Hi tech Industrial is 1.13 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 0.17 of returns per unit of risk over similar time horizon. If you would invest 604.00 in Elite Color Environmental on September 2, 2024 and sell it today you would earn a total of 71.00 from holding Elite Color Environmental or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. Elite Color Environmental
Performance |
| Timeline |
| Jonjee Hi tech |
| Elite Color Environmental |
Jonjee Hi-tech and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi-tech and Elite Color
The main advantage of trading using opposite Jonjee Hi-tech and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi-tech 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.| Jonjee Hi-tech vs. Nanjing Putian Telecommunications | Jonjee Hi-tech vs. Shenzhen Hifuture Electric | Jonjee Hi-tech vs. Tianjin Realty Development | Jonjee Hi-tech vs. Shenyang Huitian Thermal |
| Elite Color vs. TVZone Media Co | Elite Color vs. Lander Sports Development | Elite Color vs. Shenzhen Bioeasy Biotechnology | Elite Color vs. Wuhan Hvsen Biotechnology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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