Correlation Between Elite Color and Qinghai Salt
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By analyzing existing cross correlation between Elite Color Environmental and Qinghai Salt Lake, you can compare the effects of market volatilities on Elite Color and Qinghai Salt 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 Elite Color with a short position of Qinghai Salt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Qinghai Salt.
Diversification Opportunities for Elite Color and Qinghai Salt
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elite and Qinghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Qinghai Salt Lake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Salt Lake and Elite Color 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 Elite Color Environmental are associated (or correlated) with Qinghai Salt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Salt Lake has no effect on the direction of Elite Color i.e., Elite Color and Qinghai Salt go up and down completely randomly.
Pair Corralation between Elite Color and Qinghai Salt
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.16 times more return on investment than Qinghai Salt. However, Elite Color is 1.16 times more volatile than Qinghai Salt Lake. It trades about 0.01 of its potential returns per unit of risk. Qinghai Salt Lake is currently generating about 0.0 per unit of risk. If you would invest 665.00 in Elite Color Environmental on September 24, 2024 and sell it today you would lose (4.00) from holding Elite Color Environmental or give up 0.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Elite Color Environmental vs. Qinghai Salt Lake
Performance |
Timeline |
Elite Color Environmental |
Qinghai Salt Lake |
Elite Color and Qinghai Salt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elite Color and Qinghai Salt
The main advantage of trading using opposite Elite Color and Qinghai Salt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Qinghai Salt 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 Qinghai Salt will offset losses from the drop in Qinghai Salt's long position.Elite Color vs. Zijin Mining Group | Elite Color vs. Wanhua Chemical Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining |
Qinghai Salt vs. Zijin Mining Group | Qinghai Salt vs. Wanhua Chemical Group | Qinghai Salt vs. Baoshan Iron Steel | Qinghai Salt vs. Shandong Gold 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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