Correlation Between Runjian Communication and Guangdong Skychem
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By analyzing existing cross correlation between Runjian Communication Co and Guangdong Skychem Technology, you can compare the effects of market volatilities on Runjian Communication and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and Guangdong Skychem.
Diversification Opportunities for Runjian Communication and Guangdong Skychem
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Runjian and Guangdong is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Runjian Communication i.e., Runjian Communication and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Runjian Communication and Guangdong Skychem
Assuming the 90 days trading horizon Runjian Communication Co is expected to generate 0.72 times more return on investment than Guangdong Skychem. However, Runjian Communication Co is 1.38 times less risky than Guangdong Skychem. It trades about -0.14 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about -0.11 per unit of risk. If you would invest 3,532 in Runjian Communication Co on October 30, 2024 and sell it today you would lose (320.00) from holding Runjian Communication Co or give up 9.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Runjian Communication |
| Guangdong Skychem |
Runjian Communication and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and Guangdong Skychem
The main advantage of trading using opposite Runjian Communication and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem'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 |
| Guangdong Skychem vs. Sihui Fuji Electronics | Guangdong Skychem vs. Zijin Mining Group | Guangdong Skychem vs. Fujian Oriental Silver | Guangdong Skychem vs. TongFu Microelectronics Co |
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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