Correlation Between Runjian Communication and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Runjian Communication Co and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Runjian Communication and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Zhangjiagang Freetrade.
Diversification Opportunities for Runjian Communication and Zhangjiagang Freetrade
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Runjian and Zhangjiagang is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Runjian Communication i.e., Runjian Communication and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Runjian Communication and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.38 times more return on investment than Zhangjiagang Freetrade. However, Runjian Communication is 1.38 times more volatile than Zhangjiagang Freetrade Science. It trades about 0.07 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about -0.09 per unit of risk. If you would invest 2,982 in Runjian Communication Co on October 30, 2024 and sell it today you would earn a total of 230.00 from holding Runjian Communication Co or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Runjian Communication |
| Zhangjiagang Freetrade |
Runjian Communication and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Zhangjiagang Freetrade
The main advantage of trading using opposite Runjian Communication and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Runjian Communication vs. Ningbo Bohui Chemical | Runjian Communication vs. Shaanxi Construction Machinery | Runjian Communication vs. Dymatic Chemicals | Runjian Communication vs. Shanghai Construction Group |
| Zhangjiagang Freetrade vs. Ping An Insurance | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. Guosheng Financial Holding | Zhangjiagang Freetrade vs. Bank of Suzhou |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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