Correlation Between Runjian Communication and Gansu Huangtai
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By analyzing existing cross correlation between Runjian Communication Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Runjian Communication and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Gansu Huangtai.
Diversification Opportunities for Runjian Communication and Gansu Huangtai
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Gansu is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Runjian Communication i.e., Runjian Communication and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Runjian Communication and Gansu Huangtai
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.7 times more return on investment than Gansu Huangtai. However, Runjian Communication Co is 1.43 times less risky than Gansu Huangtai. It trades about 0.02 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about -0.01 per unit of risk. If you would invest 3,041 in Runjian Communication Co on October 18, 2024 and sell it today you would earn a total of 14.00 from holding Runjian Communication Co or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Runjian Communication |
| Gansu Huangtai Wine |
Runjian Communication and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Gansu Huangtai
The main advantage of trading using opposite Runjian Communication and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Runjian Communication vs. Ningbo Jintian Copper | Runjian Communication vs. Ye Chiu Metal | Runjian Communication vs. Dongfeng Automobile Co | Runjian Communication vs. Xinjiang Baodi Mining |
| Gansu Huangtai vs. Runjian Communication Co | Gansu Huangtai vs. Dongfeng Automobile Co | Gansu Huangtai vs. Suzhou Mingzhi Technology | Gansu Huangtai vs. Songz Automobile Air |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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