Correlation Between Runjian Communication and Sichuan Fulin
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By analyzing existing cross correlation between Runjian Communication Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Runjian Communication and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Sichuan Fulin.
Diversification Opportunities for Runjian Communication and Sichuan Fulin
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Sichuan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Runjian Communication i.e., Runjian Communication and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Runjian Communication and Sichuan Fulin
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.15 times more return on investment than Sichuan Fulin. However, Runjian Communication is 1.15 times more volatile than Sichuan Fulin Transportation. It trades about 0.0 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about -0.03 per unit of risk. If you would invest 3,083 in Runjian Communication Co on October 11, 2024 and sell it today you would lose (33.00) from holding Runjian Communication Co or give up 1.07% 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. Sichuan Fulin Transportation
Performance |
| Timeline |
| Runjian Communication |
| Sichuan Fulin Transp |
Runjian Communication and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Sichuan Fulin
The main advantage of trading using opposite Runjian Communication and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin'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 |
| Sichuan Fulin vs. Dareway Software Co | Sichuan Fulin vs. Muyuan Foodstuff Co | Sichuan Fulin vs. Ligao Foods CoLtd | Sichuan Fulin vs. Great Sun Foods Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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