Correlation Between Runjian Communication and Zhejiang Kingland
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By analyzing existing cross correlation between Runjian Communication Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Runjian Communication and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Zhejiang Kingland.
Diversification Opportunities for Runjian Communication and Zhejiang Kingland
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Runjian and Zhejiang is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Runjian Communication i.e., Runjian Communication and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Runjian Communication and Zhejiang Kingland
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Zhejiang Kingland. In addition to that, Runjian Communication is 2.74 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.07 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.04 per unit of volatility. If you would invest 588.00 in Zhejiang Kingland Pipeline on November 1, 2024 and sell it today you would lose (5.00) from holding Zhejiang Kingland Pipeline or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Runjian Communication |
| Zhejiang Kingland |
Runjian Communication and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Zhejiang Kingland
The main advantage of trading using opposite Runjian Communication and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Runjian Communication vs. Soochow Suzhou Industrial | Runjian Communication vs. MayAir Technology Co | Runjian Communication vs. Gem Year Industrial Co | Runjian Communication vs. Guangdong Jingyi Metal |
| Zhejiang Kingland vs. Queclink Wireless Solutions | Zhejiang Kingland vs. Quectel Wireless Solutions | Zhejiang Kingland vs. Glodon Software Co | Zhejiang Kingland vs. Double Medical Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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