Correlation Between Runjian Communication and Anhui Jianghuai
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By analyzing existing cross correlation between Runjian Communication Co and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Runjian Communication and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Anhui Jianghuai.
Diversification Opportunities for Runjian Communication and Anhui Jianghuai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Runjian and Anhui is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Runjian Communication i.e., Runjian Communication and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Runjian Communication and Anhui Jianghuai
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.52 times more return on investment than Anhui Jianghuai. However, Runjian Communication Co is 1.92 times less risky than Anhui Jianghuai. It trades about 0.02 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about -0.15 per unit of risk. If you would invest 3,107 in Runjian Communication Co on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Runjian Communication Co or generate 0.29% 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. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Runjian Communication |
| Anhui Jianghuai Auto |
Runjian Communication and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Anhui Jianghuai
The main advantage of trading using opposite Runjian Communication and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. Bank of China |
| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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