Correlation Between Runjian Communication and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Runjian Communication Co and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Runjian Communication and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and SUNSEA Telecommunicatio.
Diversification Opportunities for Runjian Communication and SUNSEA Telecommunicatio
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Runjian and SUNSEA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Runjian Communication i.e., Runjian Communication and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Runjian Communication and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Runjian Communication is expected to generate 19.59 times less return on investment than SUNSEA Telecommunicatio. But when comparing it to its historical volatility, Runjian Communication Co is 1.79 times less risky than SUNSEA Telecommunicatio. It trades about 0.0 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 923.00 in SUNSEA Telecommunications Co on October 11, 2024 and sell it today you would earn a total of 24.00 from holding SUNSEA Telecommunications Co or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Runjian Communication |
| SUNSEA Telecommunicatio |
Runjian Communication and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and SUNSEA Telecommunicatio
The main advantage of trading using opposite Runjian Communication and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Runjian Communication vs. Heilongjiang Publishing Media | Runjian Communication vs. Ligao Foods CoLtd | Runjian Communication vs. Youyou Foods Co | Runjian Communication vs. Guangdong Wens Foodstuff |
| SUNSEA Telecommunicatio vs. Bingo Software Co | SUNSEA Telecommunicatio vs. Hangzhou Pinming Software | SUNSEA Telecommunicatio vs. Digiwin Software Co | SUNSEA Telecommunicatio vs. Kuangda Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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