Correlation Between Runjian Communication and Tongling Nonferrous
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By analyzing existing cross correlation between Runjian Communication Co and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Runjian Communication and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Tongling Nonferrous.
Diversification Opportunities for Runjian Communication and Tongling Nonferrous
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Runjian and Tongling is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Runjian Communication i.e., Runjian Communication and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Runjian Communication and Tongling Nonferrous
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Tongling Nonferrous. In addition to that, Runjian Communication is 1.61 times more volatile than Tongling Nonferrous Metals. It trades about -0.01 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.01 per unit of volatility. If you would invest 330.00 in Tongling Nonferrous Metals on October 16, 2024 and sell it today you would lose (2.00) from holding Tongling Nonferrous Metals or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Runjian Communication Co vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Runjian Communication |
| Tongling Nonferrous |
Runjian Communication and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Tongling Nonferrous
The main advantage of trading using opposite Runjian Communication and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' 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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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