Correlation Between Runjian Communication and PKU HealthCare
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By analyzing existing cross correlation between Runjian Communication Co and PKU HealthCare Corp, you can compare the effects of market volatilities on Runjian Communication and PKU HealthCare 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 PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and PKU HealthCare.
Diversification Opportunities for Runjian Communication and PKU HealthCare
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Runjian and PKU is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp 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 PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of Runjian Communication i.e., Runjian Communication and PKU HealthCare go up and down completely randomly.
Pair Corralation between Runjian Communication and PKU HealthCare
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.74 times more return on investment than PKU HealthCare. However, Runjian Communication Co is 1.36 times less risky than PKU HealthCare. It trades about -0.08 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about -0.09 per unit of risk. If you would invest 3,183 in Runjian Communication Co on October 16, 2024 and sell it today you would lose (234.00) from holding Runjian Communication Co or give up 7.35% 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. PKU HealthCare Corp
Performance |
| Timeline |
| Runjian Communication |
| PKU HealthCare Corp |
Runjian Communication and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and PKU HealthCare
The main advantage of trading using opposite Runjian Communication and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, PKU HealthCare 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 PKU HealthCare will offset losses from the drop in PKU HealthCare'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 |
| PKU HealthCare vs. Guangxi Wuzhou Communications | PKU HealthCare vs. Jilin Jlu Communication | PKU HealthCare vs. Runjian Communication Co | PKU HealthCare vs. Wuhan Yangtze Communication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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