Correlation Between Runjian Communication and China Everbright
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By analyzing existing cross correlation between Runjian Communication Co and China Everbright Bank, you can compare the effects of market volatilities on Runjian Communication and China Everbright 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 Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and China Everbright.
Diversification Opportunities for Runjian Communication and China Everbright
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Runjian Communication i.e., Runjian Communication and China Everbright go up and down completely randomly.
Pair Corralation between Runjian Communication and China Everbright
Assuming the 90 days trading horizon Runjian Communication is expected to generate 1.1 times less return on investment than China Everbright. In addition to that, Runjian Communication is 1.72 times more volatile than China Everbright Bank. It trades about 0.04 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.08 per unit of volatility. If you would invest 326.00 in China Everbright Bank on October 30, 2024 and sell it today you would earn a total of 61.00 from holding China Everbright Bank or generate 18.71% 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 Everbright Bank
Performance |
| Timeline |
| Runjian Communication |
| China Everbright Bank |
Runjian Communication and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and China Everbright
The main advantage of trading using opposite Runjian Communication and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, China Everbright 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 Everbright will offset losses from the drop in China Everbright'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 |
| China Everbright vs. Pengxin International Mining | China Everbright vs. Western Metal Materials | China Everbright vs. Hainan Haiqi Transportation | China Everbright vs. Tibet Huayu Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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