Correlation Between Fujian Longzhou and Runjian Communication
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Runjian Communication Co, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Runjian Communication.
Diversification Opportunities for Fujian Longzhou and Runjian Communication
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Runjian is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Fujian Longzhou 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 Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Runjian Communication go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Runjian Communication
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Longzhou Transportation is 1.08 times less risky than Runjian Communication. The stock trades about -0.36 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,083 in Runjian Communication Co on October 11, 2024 and sell it today you would lose (33.00) from holding Runjian Communication Co or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Runjian Communication Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Runjian Communication |
Fujian Longzhou and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Runjian Communication
The main advantage of trading using opposite Fujian Longzhou and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
| Runjian Communication vs. Heilongjiang Publishing Media | Runjian Communication vs. Ligao Foods CoLtd | Runjian Communication vs. Youyou Foods Co | Runjian Communication vs. Guangdong Wens Foodstuff |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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