Correlation Between HeBei Jinniu and Runjian Communication
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Runjian Communication Co, you can compare the effects of market volatilities on HeBei Jinniu 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 HeBei Jinniu with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Runjian Communication.
Diversification Opportunities for HeBei Jinniu and Runjian Communication
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HeBei and Runjian is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and HeBei Jinniu 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 HeBei Jinniu Chemical 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 HeBei Jinniu i.e., HeBei Jinniu and Runjian Communication go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Runjian Communication
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.2 times more return on investment than Runjian Communication. However, HeBei Jinniu is 1.2 times more volatile than Runjian Communication Co. It trades about 0.09 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.12 per unit of risk. If you would invest 517.00 in HeBei Jinniu Chemical on October 20, 2024 and sell it today you would earn a total of 33.00 from holding HeBei Jinniu Chemical or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Runjian Communication Co
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Runjian Communication |
HeBei Jinniu and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Runjian Communication
The main advantage of trading using opposite HeBei Jinniu and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu 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.| HeBei Jinniu vs. A Zenith Home Furnishings | HeBei Jinniu vs. Xiangyu Medical Co | HeBei Jinniu vs. Vohringer Home Technology | HeBei Jinniu vs. Nanjing OLO Home |
| Runjian Communication vs. Lingyuan Iron Steel | Runjian Communication vs. HeBei Jinniu Chemical | Runjian Communication vs. Elite Color Environmental | Runjian Communication vs. Bomesc Offshore Engineering |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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