Correlation Between Runjian Communication and Eastern Air
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By analyzing existing cross correlation between Runjian Communication Co and Eastern Air Logistics, you can compare the effects of market volatilities on Runjian Communication and Eastern Air 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 Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Eastern Air.
Diversification Opportunities for Runjian Communication and Eastern Air
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Eastern is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Eastern Air Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Air Logistics 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 Eastern Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Air Logistics has no effect on the direction of Runjian Communication i.e., Runjian Communication and Eastern Air go up and down completely randomly.
Pair Corralation between Runjian Communication and Eastern Air
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the Eastern Air. In addition to that, Runjian Communication is 1.42 times more volatile than Eastern Air Logistics. It trades about -0.01 of its total potential returns per unit of risk. Eastern Air Logistics is currently generating about 0.02 per unit of volatility. If you would invest 1,472 in Eastern Air Logistics on October 11, 2024 and sell it today you would earn a total of 221.00 from holding Eastern Air Logistics or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Eastern Air Logistics
Performance |
| Timeline |
| Runjian Communication |
| Eastern Air Logistics |
Runjian Communication and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Eastern Air
The main advantage of trading using opposite Runjian Communication and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Eastern Air 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 Eastern Air will offset losses from the drop in Eastern Air's long position.| Runjian Communication vs. Haima Automobile Group | Runjian Communication vs. Guangzhou Automobile Group | Runjian Communication vs. Allied Machinery Co | Runjian Communication vs. Ningbo Construction Co |
| Eastern Air vs. Eastern Communications Co | Eastern Air vs. Runjian Communication Co | Eastern Air vs. Nanxing Furniture Machinery | Eastern Air vs. Luolai Home Textile |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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