Correlation Between Runjian Communication and Shantui Construction
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By analyzing existing cross correlation between Runjian Communication Co and Shantui Construction Machinery, you can compare the effects of market volatilities on Runjian Communication and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Shantui Construction.
Diversification Opportunities for Runjian Communication and Shantui Construction
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Runjian and Shantui is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Runjian Communication i.e., Runjian Communication and Shantui Construction go up and down completely randomly.
Pair Corralation between Runjian Communication and Shantui Construction
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Shantui Construction. In addition to that, Runjian Communication is 2.01 times more volatile than Shantui Construction Machinery. It trades about -0.08 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.0 per unit of volatility. If you would invest 943.00 in Shantui Construction Machinery on October 16, 2024 and sell it today you would lose (2.00) from holding Shantui Construction Machinery or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Shantui Construction Machinery
Performance |
| Timeline |
| Runjian Communication |
| Shantui Construction |
Runjian Communication and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Shantui Construction
The main advantage of trading using opposite Runjian Communication and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction'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 |
| Shantui Construction vs. Runjian Communication Co | Shantui Construction vs. Huatian Hotel Group | Shantui Construction vs. Telling Telecommunication Holding | Shantui Construction vs. Bus Online Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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