Correlation Between Runjian Communication and Suzhou Industrial
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By analyzing existing cross correlation between Runjian Communication Co and Suzhou Industrial Park, you can compare the effects of market volatilities on Runjian Communication and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Suzhou Industrial.
Diversification Opportunities for Runjian Communication and Suzhou Industrial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Runjian and Suzhou is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Runjian Communication i.e., Runjian Communication and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Runjian Communication and Suzhou Industrial
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Suzhou Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Runjian Communication Co is 1.15 times less risky than Suzhou Industrial. The stock trades about 0.0 of its potential returns per unit of risk. The Suzhou Industrial Park is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 970.00 in Suzhou Industrial Park on November 7, 2024 and sell it today you would lose (106.00) from holding Suzhou Industrial Park or give up 10.93% 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. Suzhou Industrial Park
Performance |
| Timeline |
| Runjian Communication |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Suzhou Industrial Park |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Runjian Communication and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Suzhou Industrial
The main advantage of trading using opposite Runjian Communication and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.The idea behind Runjian Communication Co and Suzhou Industrial Park 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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