Correlation Between Fujian Oriental and Runjian Communication
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By analyzing existing cross correlation between Fujian Oriental Silver and Runjian Communication Co, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Runjian Communication.
Diversification Opportunities for Fujian Oriental and Runjian Communication
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Runjian is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Runjian Communication go up and down completely randomly.
Pair Corralation between Fujian Oriental and Runjian Communication
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Runjian Communication. In addition to that, Fujian Oriental is 1.13 times more volatile than Runjian Communication Co. It trades about -0.03 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about -0.01 per unit of volatility. If you would invest 4,609 in Runjian Communication Co on October 15, 2024 and sell it today you would lose (1,637) from holding Runjian Communication Co or give up 35.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Runjian Communication Co
Performance |
| Timeline |
| Fujian Oriental Silver |
| Runjian Communication |
Fujian Oriental and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Runjian Communication
The main advantage of trading using opposite Fujian Oriental and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Gan Yuan Foods | Fujian Oriental vs. Tibet Huayu Mining | Fujian Oriental vs. Bosera CMSK Industrial | Fujian Oriental vs. Chengtun Mining 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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