Correlation Between Runjian Communication and Zhuhai Bojay
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By analyzing existing cross correlation between Runjian Communication Co and Zhuhai Bojay Electronics, you can compare the effects of market volatilities on Runjian Communication and Zhuhai Bojay 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 Zhuhai Bojay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Zhuhai Bojay.
Diversification Opportunities for Runjian Communication and Zhuhai Bojay
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Runjian and Zhuhai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Zhuhai Bojay Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Bojay Electronics 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 Zhuhai Bojay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Bojay Electronics has no effect on the direction of Runjian Communication i.e., Runjian Communication and Zhuhai Bojay go up and down completely randomly.
Pair Corralation between Runjian Communication and Zhuhai Bojay
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Zhuhai Bojay. But the stock apears to be less risky and, when comparing its historical volatility, Runjian Communication Co is 1.09 times less risky than Zhuhai Bojay. The stock trades about -0.01 of its potential returns per unit of risk. The Zhuhai Bojay Electronics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,586 in Zhuhai Bojay Electronics on October 14, 2024 and sell it today you would lose (869.00) from holding Zhuhai Bojay Electronics or give up 24.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Zhuhai Bojay Electronics
Performance |
| Timeline |
| Runjian Communication |
| Zhuhai Bojay Electronics |
Runjian Communication and Zhuhai Bojay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Zhuhai Bojay
The main advantage of trading using opposite Runjian Communication and Zhuhai Bojay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Zhuhai Bojay 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 Zhuhai Bojay will offset losses from the drop in Zhuhai Bojay's long position.The idea behind Runjian Communication Co and Zhuhai Bojay Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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