Correlation Between Shenyang Chemical and Runjian Communication
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By analyzing existing cross correlation between Shenyang Chemical Industry and Runjian Communication Co, you can compare the effects of market volatilities on Shenyang Chemical and Runjian Communication 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 Shenyang Chemical with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Runjian Communication.
Diversification Opportunities for Shenyang Chemical and Runjian Communication
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenyang and Runjian is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Shenyang Chemical 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 Shenyang Chemical Industry are associated (or correlated) with Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Runjian Communication go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Runjian Communication
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Chemical Industry is 1.21 times less risky than Runjian Communication. The stock trades about -0.02 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,609 in Runjian Communication Co on October 18, 2024 and sell it today you would lose (1,554) from holding Runjian Communication Co or give up 33.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Runjian Communication Co
Performance |
| Timeline |
| Shenyang Chemical |
| Runjian Communication |
Shenyang Chemical and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Runjian Communication
The main advantage of trading using opposite Shenyang Chemical and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Shenyang Chemical vs. Eastroc Beverage Group | Shenyang Chemical vs. Impulse Qingdao Health | Shenyang Chemical vs. Offshore Oil Engineering | Shenyang Chemical vs. Jiangsu Yanghe Brewery |
| Runjian Communication vs. Liuzhou Chemical Industry | Runjian Communication vs. Shenyang Chemical Industry | Runjian Communication vs. Baoshan Iron Steel | Runjian Communication vs. Anyang 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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