Correlation Between Runjian Communication and Huaxia Eye
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By analyzing existing cross correlation between Runjian Communication Co and Huaxia Eye Hospital, you can compare the effects of market volatilities on Runjian Communication and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Huaxia Eye.
Diversification Opportunities for Runjian Communication and Huaxia Eye
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Runjian and Huaxia is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Runjian Communication i.e., Runjian Communication and Huaxia Eye go up and down completely randomly.
Pair Corralation between Runjian Communication and Huaxia Eye
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.04 times more return on investment than Huaxia Eye. However, Runjian Communication is 1.04 times more volatile than Huaxia Eye Hospital. It trades about 0.01 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.05 per unit of risk. If you would invest 3,291 in Runjian Communication Co on October 18, 2024 and sell it today you would lose (236.00) from holding Runjian Communication Co or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Runjian Communication Co vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Runjian Communication |
| Huaxia Eye Hospital |
Runjian Communication and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Huaxia Eye
The main advantage of trading using opposite Runjian Communication and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Runjian Communication vs. Liuzhou Chemical Industry | Runjian Communication vs. Shenyang Chemical Industry | Runjian Communication vs. Baoshan Iron Steel | Runjian Communication vs. Anyang Iron Steel |
| Huaxia Eye vs. China Satellite Communications | Huaxia Eye vs. Lecron Energy Saving | Huaxia Eye vs. Guangzhou Haige Communications | Huaxia Eye vs. Industrial Bank Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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