Correlation Between Risuntek and Shanghai Rongtai
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By analyzing existing cross correlation between Risuntek and Shanghai Rongtai Health, you can compare the effects of market volatilities on Risuntek and Shanghai Rongtai 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 Risuntek with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Risuntek and Shanghai Rongtai.
Diversification Opportunities for Risuntek and Shanghai Rongtai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Risuntek and Shanghai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Risuntek and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Risuntek 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 Risuntek are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Risuntek i.e., Risuntek and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Risuntek and Shanghai Rongtai
Assuming the 90 days trading horizon Risuntek is expected to generate 1.48 times more return on investment than Shanghai Rongtai. However, Risuntek is 1.48 times more volatile than Shanghai Rongtai Health. It trades about 0.03 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.01 per unit of risk. If you would invest 1,876 in Risuntek on September 3, 2024 and sell it today you would earn a total of 626.00 from holding Risuntek or generate 33.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Risuntek vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Risuntek |
| Shanghai Rongtai Health |
Risuntek and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Risuntek and Shanghai Rongtai
The main advantage of trading using opposite Risuntek and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Risuntek position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Risuntek vs. CITIC Guoan Information | Risuntek vs. Datang HuaYin Electric | Risuntek vs. Impulse Qingdao Health | Risuntek vs. AVCON Information Tech |
| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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