Correlation Between Runjian Communication and Shenzhen MYS
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By analyzing existing cross correlation between Runjian Communication Co and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Runjian Communication and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Shenzhen MYS.
Diversification Opportunities for Runjian Communication and Shenzhen MYS
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Runjian and Shenzhen is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Runjian Communication i.e., Runjian Communication and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Runjian Communication and Shenzhen MYS
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Shenzhen MYS. In addition to that, Runjian Communication is 1.06 times more volatile than Shenzhen MYS Environmental. It trades about -0.06 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about -0.06 per unit of volatility. If you would invest 356.00 in Shenzhen MYS Environmental on October 24, 2024 and sell it today you would lose (15.00) from holding Shenzhen MYS Environmental or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Runjian Communication |
| Shenzhen MYS Environ |
Runjian Communication and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Shenzhen MYS
The main advantage of trading using opposite Runjian Communication and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Runjian Communication vs. Guangzhou Restaurants Group | Runjian Communication vs. Henan Shuanghui Investment | Runjian Communication vs. Hubei Geoway Investment | Runjian Communication vs. Nuode Investment Co |
| Shenzhen MYS vs. Runjian Communication Co | Shenzhen MYS vs. FSPG Hi Tech Co | Shenzhen MYS vs. Qingdao Choho Industrial | Shenzhen MYS vs. China Minmetals Rare |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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