Correlation Between Guangdong Shenglu and Runjian Communication
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Runjian Communication Co, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Runjian Communication.
Diversification Opportunities for Guangdong Shenglu and Runjian Communication
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Runjian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Runjian Communication go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Runjian Communication
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Runjian Communication. In addition to that, Guangdong Shenglu is 1.11 times more volatile than Runjian Communication Co. It trades about 0.0 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 3,107 in Runjian Communication Co on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Runjian Communication Co or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Runjian Communication Co
Performance |
| Timeline |
| Guangdong Shenglu |
| Runjian Communication |
Guangdong Shenglu and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Runjian Communication
The main advantage of trading using opposite Guangdong Shenglu and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. Bank of China |
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.
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