Correlation Between Runjian Communication and Xinjiang Communications
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By analyzing existing cross correlation between Runjian Communication Co and Xinjiang Communications Construction, you can compare the effects of market volatilities on Runjian Communication and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Xinjiang Communications.
Diversification Opportunities for Runjian Communication and Xinjiang Communications
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Runjian and Xinjiang is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Runjian Communication i.e., Runjian Communication and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Runjian Communication and Xinjiang Communications
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.4 times more return on investment than Xinjiang Communications. However, Runjian Communication is 1.4 times more volatile than Xinjiang Communications Construction. It trades about -0.12 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.19 per unit of risk. If you would invest 3,387 in Runjian Communication Co on October 20, 2024 and sell it today you would lose (297.00) from holding Runjian Communication Co or give up 8.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Runjian Communication |
| Xinjiang Communications |
Runjian Communication and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Xinjiang Communications
The main advantage of trading using opposite Runjian Communication and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Runjian Communication vs. Lingyuan Iron Steel | Runjian Communication vs. HeBei Jinniu Chemical | Runjian Communication vs. Elite Color Environmental | Runjian Communication vs. Bomesc Offshore Engineering |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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