Correlation Between Runjian Communication and Yankershop Food
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By analyzing existing cross correlation between Runjian Communication Co and Yankershop Food Co, you can compare the effects of market volatilities on Runjian Communication and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Yankershop Food.
Diversification Opportunities for Runjian Communication and Yankershop Food
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Yankershop is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Runjian Communication i.e., Runjian Communication and Yankershop Food go up and down completely randomly.
Pair Corralation between Runjian Communication and Yankershop Food
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.17 times more return on investment than Yankershop Food. However, Runjian Communication is 1.17 times more volatile than Yankershop Food Co. It trades about 0.07 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.04 per unit of risk. If you would invest 2,982 in Runjian Communication Co on October 30, 2024 and sell it today you would earn a total of 230.00 from holding Runjian Communication Co or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Yankershop Food Co
Performance |
| Timeline |
| Runjian Communication |
| Yankershop Food |
Runjian Communication and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Yankershop Food
The main advantage of trading using opposite Runjian Communication and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Runjian Communication vs. Ningbo Bohui Chemical | Runjian Communication vs. Shaanxi Construction Machinery | Runjian Communication vs. Dymatic Chemicals | Runjian Communication vs. Shanghai Construction Group |
| Yankershop Food vs. Kweichow Moutai Co | Yankershop Food vs. Contemporary Amperex Technology | Yankershop Food vs. G bits Network Technology | Yankershop Food vs. Beijing Roborock 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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