Correlation Between Elite Color and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Elite Color Environmental and Dow Jones Industrial, you can compare the effects of market volatilities on Elite Color and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Dow Jones.
Diversification Opportunities for Elite Color and Dow Jones
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elite and Dow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Elite Color i.e., Elite Color and Dow Jones go up and down completely randomly.
Pair Corralation between Elite Color and Dow Jones
Assuming the 90 days trading horizon Elite Color is expected to generate 1.57 times less return on investment than Dow Jones. In addition to that, Elite Color is 3.15 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,337,648 in Dow Jones Industrial on September 11, 2024 and sell it today you would earn a total of 1,102,545 from holding Dow Jones Industrial or generate 33.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 96.36% |
Values | Daily Returns |
Elite Color Environmental vs. Dow Jones Industrial
Performance |
Timeline |
Elite Color and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Elite Color Environmental
Pair trading matchups for Elite Color
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Elite Color and Dow Jones
The main advantage of trading using opposite Elite Color and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Elite Color vs. Digital China Information | Elite Color vs. Bloomage Biotechnology Corp | Elite Color vs. Yili Chuanning Biotechnology | Elite Color vs. Shanghai Rendu Biotechnology |
Dow Jones vs. Digi International | Dow Jones vs. Evertz Technologies Limited | Dow Jones vs. Avis Budget Group | Dow Jones vs. Vestis |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |