Correlation Between Runjian Communication and Digiwin Software
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By analyzing existing cross correlation between Runjian Communication Co and Digiwin Software Co, you can compare the effects of market volatilities on Runjian Communication and Digiwin Software 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 Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Digiwin Software.
Diversification Opportunities for Runjian Communication and Digiwin Software
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Runjian and Digiwin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software 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 Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of Runjian Communication i.e., Runjian Communication and Digiwin Software go up and down completely randomly.
Pair Corralation between Runjian Communication and Digiwin Software
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Digiwin Software. But the stock apears to be less risky and, when comparing its historical volatility, Runjian Communication Co is 1.28 times less risky than Digiwin Software. The stock trades about -0.01 of its potential returns per unit of risk. The Digiwin Software Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,704 in Digiwin Software Co on October 16, 2024 and sell it today you would earn a total of 608.00 from holding Digiwin Software Co or generate 35.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Digiwin Software Co
Performance |
| Timeline |
| Runjian Communication |
| Digiwin Software |
Runjian Communication and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Digiwin Software
The main advantage of trading using opposite Runjian Communication and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Digiwin Software 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| Runjian Communication vs. Heilongjiang Transport Development | Runjian Communication vs. Xiamen Bank Co | Runjian Communication vs. Bank of Suzhou | Runjian Communication vs. Rising Nonferrous Metals |
| Digiwin Software vs. Weihai Honglin Electronic | Digiwin Software vs. Runjian Communication Co | Digiwin Software vs. Aurora Optoelectronics Co | Digiwin Software vs. Cansino Biologics |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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