Correlation Between Runjian Communication and Sichuan Hebang
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By analyzing existing cross correlation between Runjian Communication Co and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Runjian Communication and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Sichuan Hebang.
Diversification Opportunities for Runjian Communication and Sichuan Hebang
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Runjian and Sichuan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Runjian Communication i.e., Runjian Communication and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Runjian Communication and Sichuan Hebang
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.77 times more return on investment than Sichuan Hebang. However, Runjian Communication is 1.77 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.0 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 3,648 in Runjian Communication Co on October 16, 2024 and sell it today you would lose (554.00) from holding Runjian Communication Co or give up 15.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Runjian Communication |
| Sichuan Hebang Biote |
Runjian Communication and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Sichuan Hebang
The main advantage of trading using opposite Runjian Communication and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Runjian Communication vs. Heilongjiang Transport Development | Runjian Communication vs. Xiamen Bank Co | Runjian Communication vs. Bank of Suzhou | Runjian Communication vs. Rising Nonferrous Metals |
| Sichuan Hebang vs. China Eastern Airlines | Sichuan Hebang vs. Allwin Telecommunication Co | Sichuan Hebang vs. Runjian Communication Co | Sichuan Hebang vs. Beijing Bewinner Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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