Correlation Between Runjian Communication and Guangdong Shenglu
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By analyzing existing cross correlation between Runjian Communication Co and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Runjian Communication and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Guangdong Shenglu.
Diversification Opportunities for Runjian Communication and Guangdong Shenglu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Runjian and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Runjian Communication i.e., Runjian Communication and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Runjian Communication and Guangdong Shenglu
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.9 times more return on investment than Guangdong Shenglu. However, Runjian Communication Co is 1.11 times less risky than Guangdong Shenglu. It trades about 0.02 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about 0.0 per unit of risk. If you would invest 3,107 in Runjian Communication Co on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Runjian Communication Co or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Runjian Communication |
| Guangdong Shenglu |
Runjian Communication and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Guangdong Shenglu
The main advantage of trading using opposite Runjian Communication and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. Bank of China |
| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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