Correlation Between Runjian Communication and Huatian Hotel
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By analyzing existing cross correlation between Runjian Communication Co and Huatian Hotel Group, you can compare the effects of market volatilities on Runjian Communication and Huatian Hotel 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 Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Huatian Hotel.
Diversification Opportunities for Runjian Communication and Huatian Hotel
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Runjian and Huatian is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group 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 Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Runjian Communication i.e., Runjian Communication and Huatian Hotel go up and down completely randomly.
Pair Corralation between Runjian Communication and Huatian Hotel
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.18 times more return on investment than Huatian Hotel. However, Runjian Communication is 1.18 times more volatile than Huatian Hotel Group. It trades about -0.07 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.1 per unit of risk. If you would invest 3,316 in Runjian Communication Co on October 23, 2024 and sell it today you would lose (174.00) from holding Runjian Communication Co or give up 5.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Runjian Communication Co vs. Huatian Hotel Group
Performance |
| Timeline |
| Runjian Communication |
| Huatian Hotel Group |
Runjian Communication and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Huatian Hotel
The main advantage of trading using opposite Runjian Communication and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Runjian Communication vs. Holitech Technology Co | Runjian Communication vs. Gome Telecom Equipment | Runjian Communication vs. Zotye Automobile Co | Runjian Communication vs. Danhua Chemical Technology |
| Huatian Hotel vs. Runjian Communication Co | Huatian Hotel vs. Dr Peng Telecom | Huatian Hotel vs. Sunny Loan Top | Huatian Hotel vs. Shanghai Yaoji Playing |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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