Correlation Between GUOMAI Culture and Runjian Communication
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By analyzing existing cross correlation between GUOMAI Culture Media and Runjian Communication Co, you can compare the effects of market volatilities on GUOMAI Culture 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 GUOMAI Culture with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Runjian Communication.
Diversification Opportunities for GUOMAI Culture and Runjian Communication
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GUOMAI and Runjian is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and GUOMAI Culture 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 GUOMAI Culture Media 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 GUOMAI Culture i.e., GUOMAI Culture and Runjian Communication go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Runjian Communication
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to generate 1.5 times more return on investment than Runjian Communication. However, GUOMAI Culture is 1.5 times more volatile than Runjian Communication Co. It trades about -0.01 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.02 per unit of risk. If you would invest 3,642 in GUOMAI Culture Media on October 16, 2024 and sell it today you would lose (1,346) from holding GUOMAI Culture Media or give up 36.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Runjian Communication Co
Performance |
| Timeline |
| GUOMAI Culture Media |
| Runjian Communication |
GUOMAI Culture and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Runjian Communication
The main advantage of trading using opposite GUOMAI Culture and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture 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.| GUOMAI Culture vs. GRINM Semiconductor Materials | GUOMAI Culture vs. StarPower Semiconductor | GUOMAI Culture vs. Semiconductor Manufacturing Intl | GUOMAI Culture vs. Will Semiconductor 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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