Correlation Between Runjian Communication and Eastroc Beverage
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By analyzing existing cross correlation between Runjian Communication Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Runjian Communication and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Eastroc Beverage.
Diversification Opportunities for Runjian Communication and Eastroc Beverage
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Runjian and Eastroc is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Runjian Communication i.e., Runjian Communication and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Runjian Communication and Eastroc Beverage
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 1.14 times more return on investment than Eastroc Beverage. However, Runjian Communication is 1.14 times more volatile than Eastroc Beverage Group. It trades about 0.02 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.01 per unit of risk. If you would invest 3,301 in Runjian Communication Co on October 26, 2024 and sell it today you would earn a total of 7.00 from holding Runjian Communication Co or generate 0.21% 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. Eastroc Beverage Group
Performance |
| Timeline |
| Runjian Communication |
| Eastroc Beverage |
Runjian Communication and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Eastroc Beverage
The main advantage of trading using opposite Runjian Communication and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Runjian Communication vs. Cicc Fund Management | Runjian Communication vs. Cansino Biologics | Runjian Communication vs. CGN Nuclear Technology | Runjian Communication vs. Jinhe Biotechnology Co |
| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. China Construction Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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