Correlation Between Renxin New and Road Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Renxin New Material and Road Environment Technology, you can compare the effects of market volatilities on Renxin New and Road Environment 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 Renxin New with a short position of Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and Road Environment.
Diversification Opportunities for Renxin New and Road Environment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Renxin and Road is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec and Renxin New 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 Renxin New Material are associated (or correlated) with Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Renxin New i.e., Renxin New and Road Environment go up and down completely randomly.
Pair Corralation between Renxin New and Road Environment
Assuming the 90 days trading horizon Renxin New Material is expected to generate 0.84 times more return on investment than Road Environment. However, Renxin New Material is 1.19 times less risky than Road Environment. It trades about -0.05 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.1 per unit of risk. If you would invest 1,202 in Renxin New Material on August 27, 2024 and sell it today you would lose (39.00) from holding Renxin New Material or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renxin New Material vs. Road Environment Technology
Performance |
| Timeline |
| Renxin New Material |
| Road Environment Tec |
Renxin New and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renxin New and Road Environment
The main advantage of trading using opposite Renxin New and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| Renxin New vs. Zijin Mining Group | Renxin New vs. Wanhua Chemical Group | Renxin New vs. Baoshan Iron Steel | Renxin New vs. Shandong Gold Mining |
| Road Environment vs. Jiangnan Mould Plastic | Road Environment vs. Cangzhou Mingzhu Plastic | Road Environment vs. Suzhou Mingzhi Technology | Road Environment vs. Renxin New Material |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |