Correlation Between Runjian Communication and Air China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Runjian Communication Co and Air China Ltd, you can compare the effects of market volatilities on Runjian Communication and Air China 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 Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Air China.
Diversification Opportunities for Runjian Communication and Air China
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Runjian and Air is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China 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 Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Runjian Communication i.e., Runjian Communication and Air China go up and down completely randomly.
Pair Corralation between Runjian Communication and Air China
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.17 times more return on investment than Air China. However, Runjian Communication is 1.17 times more volatile than Air China Ltd. It trades about 0.05 of its potential returns per unit of risk. Air China Ltd is currently generating about -0.07 per unit of risk. If you would invest 3,152 in Runjian Communication Co on November 3, 2024 and sell it today you would earn a total of 60.00 from holding Runjian Communication Co or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Air China Ltd
Performance |
| Timeline |
| Runjian Communication |
| Air China |
Runjian Communication and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Air China
The main advantage of trading using opposite Runjian Communication and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Runjian Communication vs. Harbin Air Conditioning | Runjian Communication vs. Jiangsu Xinri E Vehicle | Runjian Communication vs. Air China Ltd | Runjian Communication vs. BTG Hotels Group |
| Air China vs. Zhongrun Resources Investment | Air China vs. Anji Foodstuff Co | Air China vs. Hunan Investment Group | Air China vs. V V Food |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |