Correlation Between Allmed Medical and Runjian Communication
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By analyzing existing cross correlation between Allmed Medical Products and Runjian Communication Co, you can compare the effects of market volatilities on Allmed Medical and Runjian Communication 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 Allmed Medical with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Runjian Communication.
Diversification Opportunities for Allmed Medical and Runjian Communication
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allmed and Runjian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Allmed Medical 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 Allmed Medical Products are associated (or correlated) with Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Allmed Medical i.e., Allmed Medical and Runjian Communication go up and down completely randomly.
Pair Corralation between Allmed Medical and Runjian Communication
Assuming the 90 days trading horizon Allmed Medical Products is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Allmed Medical Products is 1.48 times less risky than Runjian Communication. The stock trades about -0.02 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,609 in Runjian Communication Co on October 16, 2024 and sell it today you would lose (1,660) from holding Runjian Communication Co or give up 36.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Runjian Communication Co
Performance |
| Timeline |
| Allmed Medical Products |
| Runjian Communication |
Allmed Medical and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Runjian Communication
The main advantage of trading using opposite Allmed Medical and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Allmed Medical vs. Peoples Insurance of | Allmed Medical vs. Wuhan Yangtze Communication | Allmed Medical vs. Hua Xia Bank | Allmed Medical vs. Runjian Communication 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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