Correlation Between Xiamen Jihong and Runjian Communication
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By analyzing existing cross correlation between Xiamen Jihong Package and Runjian Communication Co, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Runjian Communication.
Diversification Opportunities for Xiamen Jihong and Runjian Communication
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiamen and Runjian is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Runjian Communication go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Runjian Communication
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.09 times more return on investment than Runjian Communication. However, Xiamen Jihong is 1.09 times more volatile than Runjian Communication Co. It trades about 0.07 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.06 per unit of risk. If you would invest 1,050 in Xiamen Jihong Package on November 4, 2024 and sell it today you would earn a total of 236.00 from holding Xiamen Jihong Package or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Runjian Communication Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| Runjian Communication |
Xiamen Jihong and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Runjian Communication
The main advantage of trading using opposite Xiamen Jihong and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Linkage Software Co | Xiamen Jihong vs. China Life Insurance | Xiamen Jihong vs. China Sports Industry | Xiamen Jihong vs. Inspur Software Co |
| Runjian Communication vs. Harbin Air Conditioning | Runjian Communication vs. Jiangsu Xinri E Vehicle | Runjian Communication vs. Air China Ltd | Runjian Communication vs. BTG Hotels Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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