Correlation Between Shenzhen Centralcon and Elite Color
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Elite Color Environmental, you can compare the effects of market volatilities on Shenzhen Centralcon 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 Shenzhen Centralcon with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Elite Color.
Diversification Opportunities for Shenzhen Centralcon and Elite Color
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Elite is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment 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 Shenzhen Centralcon 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 Shenzhen Centralcon Investment 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 Shenzhen Centralcon i.e., Shenzhen Centralcon and Elite Color go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Elite Color
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.21 times more return on investment than Elite Color. However, Shenzhen Centralcon is 1.21 times more volatile than Elite Color Environmental. It trades about 0.1 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.11 per unit of risk. If you would invest 439.00 in Shenzhen Centralcon Investment on September 26, 2024 and sell it today you would earn a total of 89.00 from holding Shenzhen Centralcon Investment or generate 20.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Centralcon Investment vs. Elite Color Environmental
Performance |
Timeline |
Shenzhen Centralcon |
Elite Color Environmental |
Shenzhen Centralcon and Elite Color Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Centralcon and Elite Color
The main advantage of trading using opposite Shenzhen Centralcon and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon 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.Shenzhen Centralcon vs. Western Metal Materials | Shenzhen Centralcon vs. Sunny Loan Top | Shenzhen Centralcon vs. Sinomach General Machinery | Shenzhen Centralcon vs. Sichuan Yahua Industrial |
Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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