Correlation Between Runjian Communication and Elite Color
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By analyzing existing cross correlation between Runjian Communication Co and Elite Color Environmental, you can compare the effects of market volatilities on Runjian Communication and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Elite Color.
Diversification Opportunities for Runjian Communication and Elite Color
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Runjian and Elite is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Runjian Communication i.e., Runjian Communication and Elite Color go up and down completely randomly.
Pair Corralation between Runjian Communication and Elite Color
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Elite Color. In addition to that, Runjian Communication is 1.4 times more volatile than Elite Color Environmental. It trades about 0.0 of its total potential returns per unit of risk. Elite Color Environmental is currently generating about 0.01 per unit of volatility. If you would invest 673.00 in Elite Color Environmental on November 7, 2024 and sell it today you would lose (44.00) from holding Elite Color Environmental or give up 6.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Elite Color Environmental
Performance |
| Timeline |
| Runjian Communication |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Elite Color Environmental |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Runjian Communication and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Elite Color
The main advantage of trading using opposite Runjian Communication and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.The idea behind Runjian Communication Co and Elite Color Environmental 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.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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