Correlation Between Runjian Communication and Yes Optoelectronics
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By analyzing existing cross correlation between Runjian Communication Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Runjian Communication and Yes Optoelectronics 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 Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Yes Optoelectronics.
Diversification Opportunities for Runjian Communication and Yes Optoelectronics
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Runjian and Yes is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics 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 Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Runjian Communication i.e., Runjian Communication and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Runjian Communication and Yes Optoelectronics
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.72 times more return on investment than Yes Optoelectronics. However, Runjian Communication Co is 1.38 times less risky than Yes Optoelectronics. It trades about 0.2 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.31 per unit of risk. If you would invest 2,974 in Runjian Communication Co on November 6, 2024 and sell it today you would earn a total of 238.00 from holding Runjian Communication Co or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Runjian Communication |
| Yes Optoelectronics |
Runjian Communication and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Yes Optoelectronics
The main advantage of trading using opposite Runjian Communication and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.| Runjian Communication vs. Shandong Publishing Media | Runjian Communication vs. Hefei Metalforming Mach | Runjian Communication vs. JCHX Mining Management | Runjian Communication vs. Anhui Tongguan Copper |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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