Correlation Between Runjian Communication and Haima Automobile
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By analyzing existing cross correlation between Runjian Communication Co and Haima Automobile Group, you can compare the effects of market volatilities on Runjian Communication and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Haima Automobile.
Diversification Opportunities for Runjian Communication and Haima Automobile
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Runjian and Haima is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Runjian Communication i.e., Runjian Communication and Haima Automobile go up and down completely randomly.
Pair Corralation between Runjian Communication and Haima Automobile
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.58 times more return on investment than Haima Automobile. However, Runjian Communication Co is 1.72 times less risky than Haima Automobile. It trades about 0.02 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.02 per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Haima Automobile Group
Performance |
| Timeline |
| Runjian Communication |
| Haima Automobile |
Runjian Communication and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Haima Automobile
The main advantage of trading using opposite Runjian Communication and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. Bank of China |
| Haima Automobile vs. Cambricon Technologies Corp | Haima Automobile vs. Loongson Technology Corp | Haima Automobile vs. Shenzhen Fortune Trend | Haima Automobile vs. Chongqing Road Bridge |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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