Correlation Between Runjian Communication and China Satellite
Specify exactly 2 symbols:
By analyzing existing cross correlation between Runjian Communication Co and China Satellite Communications, you can compare the effects of market volatilities on Runjian Communication and China Satellite 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 Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and China Satellite.
Diversification Opportunities for Runjian Communication and China Satellite
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Runjian Communication i.e., Runjian Communication and China Satellite go up and down completely randomly.
Pair Corralation between Runjian Communication and China Satellite
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.86 times more return on investment than China Satellite. However, Runjian Communication Co is 1.16 times less risky than China Satellite. It trades about 0.21 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.08 per unit of risk. If you would invest 2,908 in Runjian Communication Co on September 27, 2024 and sell it today you would earn a total of 393.00 from holding Runjian Communication Co or generate 13.51% 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. China Satellite Communications
Performance |
| Timeline |
| Runjian Communication |
| China Satellite Comm |
Runjian Communication and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and China Satellite
The main advantage of trading using opposite Runjian Communication and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, China Satellite 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 Satellite will offset losses from the drop in China Satellite's long position.The idea behind Runjian Communication Co and China Satellite Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| China Satellite vs. Chengdu Kanghua Biological | China Satellite vs. Beijing Wantai Biological | China Satellite vs. Suzhou Novoprotein Scientific | China Satellite vs. COL Digital Publishing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |