Correlation Between Jiangsu Hoperun and Runjian Communication
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Runjian Communication Co, you can compare the effects of market volatilities on Jiangsu Hoperun 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 Jiangsu Hoperun with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Runjian Communication.
Diversification Opportunities for Jiangsu Hoperun and Runjian Communication
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Runjian is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Jiangsu Hoperun 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 Jiangsu Hoperun Software 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 Jiangsu Hoperun i.e., Jiangsu Hoperun and Runjian Communication go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Runjian Communication
Assuming the 90 days trading horizon Jiangsu Hoperun is expected to generate 1.32 times less return on investment than Runjian Communication. In addition to that, Jiangsu Hoperun is 1.53 times more volatile than Runjian Communication Co. It trades about 0.14 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about 0.27 per unit of volatility. If you would invest 2,974 in Runjian Communication Co on November 7, 2024 and sell it today you would earn a total of 360.00 from holding Runjian Communication Co or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Runjian Communication Co
Performance |
| Timeline |
| Jiangsu Hoperun Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Runjian Communication |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Jiangsu Hoperun and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Runjian Communication
The main advantage of trading using opposite Jiangsu Hoperun and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun 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.The idea behind Jiangsu Hoperun Software and Runjian Communication Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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