Correlation Between Runjian Communication and Wuhan Yangtze
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By analyzing existing cross correlation between Runjian Communication Co and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Runjian Communication and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Wuhan Yangtze.
Diversification Opportunities for Runjian Communication and Wuhan Yangtze
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Runjian and Wuhan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Runjian Communication i.e., Runjian Communication and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Runjian Communication and Wuhan Yangtze
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Runjian Communication Co is 2.35 times less risky than Wuhan Yangtze. The stock trades about -0.05 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Wuhan Yangtze Communication on August 25, 2024 and sell it today you would earn a total of 1,001 from holding Wuhan Yangtze Communication or generate 53.64% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Runjian Communication |
| Wuhan Yangtze Commun |
Runjian Communication and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Wuhan Yangtze
The main advantage of trading using opposite Runjian Communication and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Bank of China |
| Wuhan Yangtze vs. Ming Yang Smart | Wuhan Yangtze vs. 159005 | Wuhan Yangtze vs. Loctek Ergonomic Technology | Wuhan Yangtze vs. Xiamen East Asia |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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