Correlation Between Sichuan Jinshi and Runjian Communication
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Runjian Communication Co, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Runjian Communication.
Diversification Opportunities for Sichuan Jinshi and Runjian Communication
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Runjian is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Sichuan Jinshi 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 Sichuan Jinshi Technology 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 Sichuan Jinshi i.e., Sichuan Jinshi and Runjian Communication go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Runjian Communication
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Jinshi Technology is 1.2 times less risky than Runjian Communication. The stock trades about -0.01 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,159 in Runjian Communication Co on September 26, 2024 and sell it today you would lose (747.00) from holding Runjian Communication Co or give up 17.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Runjian Communication Co
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Runjian Communication |
Sichuan Jinshi and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Runjian Communication
The main advantage of trading using opposite Sichuan Jinshi and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Shandong Gold 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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