Correlation Between Runjian Communication and China Merchants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Runjian Communication Co and China Merchants Bank, you can compare the effects of market volatilities on Runjian Communication and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and China Merchants.
Diversification Opportunities for Runjian Communication and China Merchants
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and China is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Runjian Communication i.e., Runjian Communication and China Merchants go up and down completely randomly.
Pair Corralation between Runjian Communication and China Merchants
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the China Merchants. In addition to that, Runjian Communication is 2.1 times more volatile than China Merchants Bank. It trades about -0.01 of its total potential returns per unit of risk. China Merchants Bank is currently generating about 0.01 per unit of volatility. If you would invest 3,890 in China Merchants Bank on October 11, 2024 and sell it today you would earn a total of 10.00 from holding China Merchants Bank or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. China Merchants Bank
Performance |
| Timeline |
| Runjian Communication |
| China Merchants Bank |
Runjian Communication and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and China Merchants
The main advantage of trading using opposite Runjian Communication and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' 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 |
| China Merchants vs. Sunwave Communications Co | China Merchants vs. Runjian Communication Co | China Merchants vs. Allwin Telecommunication Co | China Merchants vs. Unisplendour Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |