Correlation Between Runjian Communication and China National
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By analyzing existing cross correlation between Runjian Communication Co and China National Software, you can compare the effects of market volatilities on Runjian Communication and China National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and China National.
Diversification Opportunities for Runjian Communication and China National
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Runjian and China is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and China National Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China National Software 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China National Software has no effect on the direction of Runjian Communication i.e., Runjian Communication and China National go up and down completely randomly.
Pair Corralation between Runjian Communication and China National
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.12 times more return on investment than China National. However, Runjian Communication is 1.12 times more volatile than China National Software. It trades about -0.06 of its potential returns per unit of risk. China National Software is currently generating about -0.19 per unit of risk. If you would invest 3,316 in Runjian Communication Co on October 24, 2024 and sell it today you would lose (163.00) from holding Runjian Communication Co or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. China National Software
Performance |
| Timeline |
| Runjian Communication |
| China National Software |
Runjian Communication and China National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and China National
The main advantage of trading using opposite Runjian Communication and China National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, China National 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 National will offset losses from the drop in China National's long position.| Runjian Communication vs. Guangzhou Restaurants Group | Runjian Communication vs. Henan Shuanghui Investment | Runjian Communication vs. Hubei Geoway Investment | Runjian Communication vs. Nuode Investment Co |
| China National vs. Jiangsu Jinling Sports | China National vs. Songz Automobile Air | China National vs. BTG Hotels Group | China National vs. Runjian Communication Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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