Correlation Between Runjian Communication and Zhongshan Public
Specify exactly 2 symbols:
By analyzing existing cross correlation between Runjian Communication Co and Zhongshan Public Utilities, you can compare the effects of market volatilities on Runjian Communication and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Zhongshan Public.
Diversification Opportunities for Runjian Communication and Zhongshan Public
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Runjian and Zhongshan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Runjian Communication i.e., Runjian Communication and Zhongshan Public go up and down completely randomly.
Pair Corralation between Runjian Communication and Zhongshan Public
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Zhongshan Public. In addition to that, Runjian Communication is 2.77 times more volatile than Zhongshan Public Utilities. It trades about -0.09 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about -0.18 per unit of volatility. If you would invest 906.00 in Zhongshan Public Utilities on October 14, 2024 and sell it today you would lose (47.00) from holding Zhongshan Public Utilities or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Runjian Communication |
| Zhongshan Public Uti |
Runjian Communication and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Zhongshan Public
The main advantage of trading using opposite Runjian Communication and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.The idea behind Runjian Communication Co and Zhongshan Public Utilities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Zhongshan Public vs. Runjian Communication Co | Zhongshan Public vs. State Grid InformationCommunication | Zhongshan Public vs. Wuhan Yangtze Communication | Zhongshan Public vs. Western Metal 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |