Correlation Between Runjian Communication and Emdoor Information
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By analyzing existing cross correlation between Runjian Communication Co and Emdoor Information Co, you can compare the effects of market volatilities on Runjian Communication and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Emdoor Information.
Diversification Opportunities for Runjian Communication and Emdoor Information
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Emdoor is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Runjian Communication i.e., Runjian Communication and Emdoor Information go up and down completely randomly.
Pair Corralation between Runjian Communication and Emdoor Information
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.58 times more return on investment than Emdoor Information. However, Runjian Communication Co is 1.72 times less risky than Emdoor Information. It trades about -0.14 of its potential returns per unit of risk. Emdoor Information Co is currently generating about -0.09 per unit of risk. If you would invest 3,532 in Runjian Communication Co on October 30, 2024 and sell it today you would lose (320.00) from holding Runjian Communication Co or give up 9.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Emdoor Information Co
Performance |
| Timeline |
| Runjian Communication |
| Emdoor Information |
Runjian Communication and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Emdoor Information
The main advantage of trading using opposite Runjian Communication and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Runjian Communication vs. Ningbo Bohui Chemical | Runjian Communication vs. Shaanxi Construction Machinery | Runjian Communication vs. Dymatic Chemicals | Runjian Communication vs. Shanghai Construction Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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