Correlation Between Fujian Nanwang and Elite Color
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By analyzing existing cross correlation between Fujian Nanwang Environment and Elite Color Environmental, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Elite Color.
Diversification Opportunities for Fujian Nanwang and Elite Color
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Elite is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and Elite Color go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Elite Color
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 2.08 times more return on investment than Elite Color. However, Fujian Nanwang is 2.08 times more volatile than Elite Color Environmental. It trades about 0.03 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.01 per unit of risk. If you would invest 1,177 in Fujian Nanwang Environment on December 10, 2024 and sell it today you would earn a total of 14.00 from holding Fujian Nanwang Environment or generate 1.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Nanwang Environment vs. Elite Color Environmental
Performance |
Timeline |
Fujian Nanwang Envir |
Elite Color Environmental |
Fujian Nanwang and Elite Color Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Nanwang and Elite Color
The main advantage of trading using opposite Fujian Nanwang and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.Fujian Nanwang vs. Liuzhou Iron Steel | Fujian Nanwang vs. Anhui Jianghuai Automobile | Fujian Nanwang vs. Hangzhou Guotai Environmental | Fujian Nanwang vs. Qiaoyin Environmental Tech |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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