Correlation Between Elite Color and Grandblue Environment

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Elite Color and Grandblue Environment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Elite Color and Grandblue Environment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elite Color Environmental and Grandblue Environment Co, you can compare the effects of market volatilities on Elite Color and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Grandblue Environment.

Diversification Opportunities for Elite Color and Grandblue Environment

EliteGrandblueDiversified AwayEliteGrandblueDiversified Away100%
0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Elite and Grandblue is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Elite Color i.e., Elite Color and Grandblue Environment go up and down completely randomly.

Pair Corralation between Elite Color and Grandblue Environment

Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.71 times more return on investment than Grandblue Environment. However, Elite Color is 1.71 times more volatile than Grandblue Environment Co. It trades about 0.05 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.08 per unit of risk. If you would invest  605.00  in Elite Color Environmental on September 30, 2024 and sell it today you would earn a total of  35.00  from holding Elite Color Environmental or generate 5.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Elite Color Environmental  vs.  Grandblue Environment Co

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 010203040
JavaScript chart by amCharts 3.21.15002998 600323
       Timeline  
Elite Color Environmental 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Elite Color Environmental are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Elite Color may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec66.577.5
Grandblue Environment 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Grandblue Environment Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Grandblue Environment may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec20.52121.52222.52323.524

Elite Color and Grandblue Environment Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.13-6.84-4.54-2.250.0412.424.887.349.8 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15002998 600323
       Returns  

Pair Trading with Elite Color and Grandblue Environment

The main advantage of trading using opposite Elite Color and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.
The idea behind Elite Color Environmental and Grandblue Environment Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Global Correlations
Find global opportunities by holding instruments from different markets
CEOs Directory
Screen CEOs from public companies around the world
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals