Correlation Between Emdoor Information and Runjian Communication
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By analyzing existing cross correlation between Emdoor Information Co and Runjian Communication Co, you can compare the effects of market volatilities on Emdoor Information 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 Emdoor Information with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Runjian Communication.
Diversification Opportunities for Emdoor Information and Runjian Communication
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emdoor and Runjian is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Emdoor Information 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 Emdoor Information Co 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 Emdoor Information i.e., Emdoor Information and Runjian Communication go up and down completely randomly.
Pair Corralation between Emdoor Information and Runjian Communication
Assuming the 90 days trading horizon Emdoor Information Co is expected to under-perform the Runjian Communication. In addition to that, Emdoor Information is 1.49 times more volatile than Runjian Communication Co. It trades about -0.04 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about -0.02 per unit of volatility. If you would invest 3,183 in Runjian Communication Co on October 17, 2024 and sell it today you would lose (89.00) from holding Runjian Communication Co or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Runjian Communication Co
Performance |
| Timeline |
| Emdoor Information |
| Runjian Communication |
Emdoor Information and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Runjian Communication
The main advantage of trading using opposite Emdoor Information and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information 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.| Emdoor Information vs. Jiangsu Financial Leasing | Emdoor Information vs. Jiugui Liquor Co | Emdoor Information vs. Sino Platinum Metals Co | Emdoor Information vs. Jinhui Liquor Co |
| Runjian Communication vs. Ningbo Jintian Copper | Runjian Communication vs. Ye Chiu Metal | Runjian Communication vs. Dongfeng Automobile Co | Runjian Communication vs. Xinjiang Baodi Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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