Correlation Between Renxin New and China Resources
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By analyzing existing cross correlation between Renxin New Material and China Resources Microelectronics, you can compare the effects of market volatilities on Renxin New and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and China Resources.
Diversification Opportunities for Renxin New and China Resources
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Renxin and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material and China Resources Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Micr 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Micr has no effect on the direction of Renxin New i.e., Renxin New and China Resources go up and down completely randomly.
Pair Corralation between Renxin New and China Resources
Assuming the 90 days trading horizon Renxin New Material is expected to under-perform the China Resources. In addition to that, Renxin New is 1.61 times more volatile than China Resources Microelectronics. It trades about -0.03 of its total potential returns per unit of risk. China Resources Microelectronics is currently generating about 0.0 per unit of volatility. If you would invest 5,345 in China Resources Microelectronics on September 12, 2024 and sell it today you would lose (397.00) from holding China Resources Microelectronics or give up 7.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 74.0% |
| Values | Daily Returns |
Renxin New Material vs. China Resources Microelectroni
Performance |
| Timeline |
| Renxin New Material |
| China Resources Micr |
Renxin New and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renxin New and China Resources
The main advantage of trading using opposite Renxin New and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Renxin New vs. Jiangsu Jinling Sports | Renxin New vs. Hubeiyichang Transportation Group | Renxin New vs. Dazhong Transportation Group | Renxin New vs. Hainan Haiqi Transportation |
| China Resources vs. Gansu Jiu Steel | China Resources vs. Shandong Mining Machinery | China Resources vs. Aba Chemicals Corp | China Resources vs. BlueFocus Communication Group |
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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