Correlation Between Runjian Communication and Guangzhou Jinyi
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By analyzing existing cross correlation between Runjian Communication Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Runjian Communication and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Guangzhou Jinyi.
Diversification Opportunities for Runjian Communication and Guangzhou Jinyi
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Guangzhou is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Runjian Communication i.e., Runjian Communication and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Runjian Communication and Guangzhou Jinyi
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.98 times more return on investment than Guangzhou Jinyi. However, Runjian Communication Co is 1.02 times less risky than Guangzhou Jinyi. It trades about -0.02 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about -0.29 per unit of risk. If you would invest 3,183 in Runjian Communication Co on October 17, 2024 and sell it today you would lose (89.00) from holding Runjian Communication Co or give up 2.8% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| Runjian Communication |
| Guangzhou Jinyi Media |
Runjian Communication and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Guangzhou Jinyi
The main advantage of trading using opposite Runjian Communication and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Runjian Communication vs. Ningbo Jintian Copper | Runjian Communication vs. Ye Chiu Metal | Runjian Communication vs. Dongfeng Automobile Co | Runjian Communication vs. Xinjiang Baodi Mining |
| Guangzhou Jinyi vs. Eastern Communications Co | Guangzhou Jinyi vs. Runjian Communication Co | Guangzhou Jinyi vs. Anhui Jinhe Industrial | Guangzhou Jinyi vs. Ningbo Fujia Industrial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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