Correlation Between Runjian Communication and AVCON Information
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By analyzing existing cross correlation between Runjian Communication Co and AVCON Information Tech, you can compare the effects of market volatilities on Runjian Communication and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and AVCON Information.
Diversification Opportunities for Runjian Communication and AVCON Information
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Runjian and AVCON is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Runjian Communication i.e., Runjian Communication and AVCON Information go up and down completely randomly.
Pair Corralation between Runjian Communication and AVCON Information
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, Runjian Communication Co is 1.03 times less risky than AVCON Information. The stock trades about -0.14 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 409.00 in AVCON Information Tech on October 30, 2024 and sell it today you would lose (24.00) from holding AVCON Information Tech or give up 5.87% 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. AVCON Information Tech
Performance |
| Timeline |
| Runjian Communication |
| AVCON Information Tech |
Runjian Communication and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and AVCON Information
The main advantage of trading using opposite Runjian Communication and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Runjian Communication vs. Ningbo Bohui Chemical | Runjian Communication vs. Shaanxi Construction Machinery | Runjian Communication vs. Dymatic Chemicals | Runjian Communication vs. Shanghai Construction Group |
| AVCON Information vs. Bus Online Co | AVCON Information vs. Holitech Technology Co | AVCON Information vs. Gome Telecom Equipment | AVCON Information vs. Cultural Investment Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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