Correlation Between Fujian Nanwang and Elite Color
Specify exactly 2 symbols:
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
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Elite is 0.93. 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 under-perform the Elite Color. In addition to that, Fujian Nanwang is 1.16 times more volatile than Elite Color Environmental. It trades about -0.04 of its total potential returns per unit of risk. Elite Color Environmental is currently generating about 0.01 per unit of volatility. If you would invest 638.00 in Elite Color Environmental on September 20, 2024 and sell it today you would earn a total of 11.00 from holding Elite Color Environmental or generate 1.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 77.73% |
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. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
Elite Color vs. Cultural Investment Holdings | Elite Color vs. Guangdong Liantai Environmental | Elite Color vs. Vanfund Urban Investment | Elite Color vs. Baoshan Iron Steel |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Global Correlations Find global opportunities by holding instruments from different markets |