Correlation Between Runjian Communication and Yili Chuanning
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By analyzing existing cross correlation between Runjian Communication Co and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Runjian Communication and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Yili Chuanning.
Diversification Opportunities for Runjian Communication and Yili Chuanning
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Runjian and Yili is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Runjian Communication i.e., Runjian Communication and Yili Chuanning go up and down completely randomly.
Pair Corralation between Runjian Communication and Yili Chuanning
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.87 times more return on investment than Yili Chuanning. However, Runjian Communication Co is 1.16 times less risky than Yili Chuanning. It trades about 0.07 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.02 per unit of risk. If you would invest 2,670 in Runjian Communication Co on November 3, 2024 and sell it today you would earn a total of 542.00 from holding Runjian Communication Co or generate 20.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Runjian Communication |
| Yili Chuanning Biote |
Runjian Communication and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Yili Chuanning
The main advantage of trading using opposite Runjian Communication and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Runjian Communication vs. PetroChina Co Ltd | Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Petroleum Chemical | Runjian Communication vs. China Construction Bank |
| Yili Chuanning vs. PetroChina Co Ltd | Yili Chuanning vs. China Railway Construction | Yili Chuanning vs. China Mobile Limited | Yili Chuanning vs. Industrial and Commercial |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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