Correlation Between Runjian Communication and Ningbo Fangzheng
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By analyzing existing cross correlation between Runjian Communication Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Runjian Communication and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Ningbo Fangzheng.
Diversification Opportunities for Runjian Communication and Ningbo Fangzheng
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Runjian and Ningbo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Runjian Communication i.e., Runjian Communication and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Runjian Communication and Ningbo Fangzheng
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.34 times more return on investment than Ningbo Fangzheng. However, Runjian Communication is 1.34 times more volatile than Ningbo Fangzheng Automobile. It trades about -0.01 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.29 per unit of risk. If you would invest 3,116 in Runjian Communication Co on October 12, 2024 and sell it today you would lose (66.00) from holding Runjian Communication Co or give up 2.12% 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. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Runjian Communication |
| Ningbo Fangzheng Aut |
Runjian Communication and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Ningbo Fangzheng
The main advantage of trading using opposite Runjian Communication and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's 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 |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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