Correlation Between Runjian Communication and Fibocom Wireless
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By analyzing existing cross correlation between Runjian Communication Co and Fibocom Wireless, you can compare the effects of market volatilities on Runjian Communication and Fibocom Wireless 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 Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Fibocom Wireless.
Diversification Opportunities for Runjian Communication and Fibocom Wireless
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Runjian and Fibocom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless 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 Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Runjian Communication i.e., Runjian Communication and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Runjian Communication and Fibocom Wireless
Assuming the 90 days trading horizon Runjian Communication is expected to generate 26.72 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Runjian Communication Co is 1.26 times less risky than Fibocom Wireless. It trades about 0.0 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,819 in Fibocom Wireless on October 11, 2024 and sell it today you would earn a total of 143.00 from holding Fibocom Wireless or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Fibocom Wireless
Performance |
| Timeline |
| Runjian Communication |
| Fibocom Wireless |
Runjian Communication and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Fibocom Wireless
The main advantage of trading using opposite Runjian Communication and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.| Runjian Communication vs. Heilongjiang Publishing Media | Runjian Communication vs. Ligao Foods CoLtd | Runjian Communication vs. Youyou Foods Co | Runjian Communication vs. Guangdong Wens Foodstuff |
| Fibocom Wireless vs. Nexchip Semiconductor Corp | Fibocom Wireless vs. V V Food | Fibocom Wireless vs. Yankershop Food Co | Fibocom Wireless vs. Eastroc Beverage Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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