Correlation Between Runjian Communication and Keda Clean
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By analyzing existing cross correlation between Runjian Communication Co and Keda Clean Energy, you can compare the effects of market volatilities on Runjian Communication and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Keda Clean.
Diversification Opportunities for Runjian Communication and Keda Clean
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Runjian and Keda is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Runjian Communication i.e., Runjian Communication and Keda Clean go up and down completely randomly.
Pair Corralation between Runjian Communication and Keda Clean
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 2.28 times more return on investment than Keda Clean. However, Runjian Communication is 2.28 times more volatile than Keda Clean Energy. It trades about -0.01 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.16 per unit of risk. If you would invest 3,116 in Runjian Communication Co on October 12, 2024 and sell it today you would lose (66.00) from holding Runjian Communication Co or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Keda Clean Energy
Performance |
| Timeline |
| Runjian Communication |
| Keda Clean Energy |
Runjian Communication and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Keda Clean
The main advantage of trading using opposite Runjian Communication and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's 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 |
| Keda Clean vs. INKON Life Technology | Keda Clean vs. HUAQIN TECHNOLOGY LTD | Keda Clean vs. Gansu Huangtai Wine marketing | Keda Clean vs. Easyhome New Retail |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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