Correlation Between Industrial Securities and Elite Color
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By analyzing existing cross correlation between Industrial Securities Co and Elite Color Environmental, you can compare the effects of market volatilities on Industrial Securities 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 Industrial Securities with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and Elite Color.
Diversification Opportunities for Industrial Securities and Elite Color
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Elite is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities 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 Industrial Securities 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 Industrial Securities 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 Industrial Securities i.e., Industrial Securities and Elite Color go up and down completely randomly.
Pair Corralation between Industrial Securities and Elite Color
Assuming the 90 days trading horizon Industrial Securities is expected to generate 13.65 times less return on investment than Elite Color. But when comparing it to its historical volatility, Industrial Securities Co is 1.37 times less risky than Elite Color. It trades about 0.02 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 |
Industrial Securities Co vs. Elite Color Environmental
Performance |
| Timeline |
| Industrial Securities |
| Elite Color Environmental |
Industrial Securities and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and Elite Color
The main advantage of trading using opposite Industrial Securities and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities 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.| Industrial Securities vs. BeiGene | Industrial Securities vs. Kweichow Moutai Co | Industrial Securities vs. Beijing Roborock Technology | Industrial Securities vs. G bits Network Technology |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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