Correlation Between Runjian Communication and Bohai Leasing
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By analyzing existing cross correlation between Runjian Communication Co and Bohai Leasing Co, you can compare the effects of market volatilities on Runjian Communication and Bohai Leasing 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 Runjian Communication with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Bohai Leasing.
Diversification Opportunities for Runjian Communication and Bohai Leasing
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Runjian and Bohai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Runjian Communication 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 Runjian Communication Co are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Runjian Communication i.e., Runjian Communication and Bohai Leasing go up and down completely randomly.
Pair Corralation between Runjian Communication and Bohai Leasing
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 2.1 times more return on investment than Bohai Leasing. However, Runjian Communication is 2.1 times more volatile than Bohai Leasing Co. It trades about -0.08 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.43 per unit of risk. If you would invest 3,183 in Runjian Communication Co on October 16, 2024 and sell it today you would lose (234.00) from holding Runjian Communication Co or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Bohai Leasing Co
Performance |
| Timeline |
| Runjian Communication |
| Bohai Leasing |
Runjian Communication and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Bohai Leasing
The main advantage of trading using opposite Runjian Communication and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Runjian Communication vs. Heilongjiang Transport Development | Runjian Communication vs. Xiamen Bank Co | Runjian Communication vs. Bank of Suzhou | Runjian Communication vs. Rising Nonferrous Metals |
| Bohai Leasing vs. CITIC Guoan Information | Bohai Leasing vs. CSSC Offshore Marine | Bohai Leasing vs. East Money Information | Bohai Leasing vs. Sanxiang Advanced Materials |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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