Correlation Between Gan Yuan and Runjian Communication
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By analyzing existing cross correlation between Gan Yuan Foods and Runjian Communication Co, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Runjian Communication.
Diversification Opportunities for Gan Yuan and Runjian Communication
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Runjian is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Runjian Communication go up and down completely randomly.
Pair Corralation between Gan Yuan and Runjian Communication
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.65 times more return on investment than Runjian Communication. However, Gan Yuan Foods is 1.55 times less risky than Runjian Communication. It trades about -0.08 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.09 per unit of risk. If you would invest 8,816 in Gan Yuan Foods on October 14, 2024 and sell it today you would lose (387.00) from holding Gan Yuan Foods or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Runjian Communication Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Runjian Communication |
Gan Yuan and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Runjian Communication
The main advantage of trading using opposite Gan Yuan and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. Tongyu Communication | Gan Yuan vs. Sunwave Communications Co | Gan Yuan vs. Sichuan Hebang Biotechnology | Gan Yuan vs. Wuhan Hvsen Biotechnology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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