Correlation Between Huaibei Mining and Runjian Communication
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By analyzing existing cross correlation between Huaibei Mining Holdings and Runjian Communication Co, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Runjian Communication.
Diversification Opportunities for Huaibei Mining and Runjian Communication
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Huaibei and Runjian is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and Runjian Communication go up and down completely randomly.
Pair Corralation between Huaibei Mining and Runjian Communication
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 2.16 times less risky than Runjian Communication. The stock trades about -0.13 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,908 in Runjian Communication Co on September 27, 2024 and sell it today you would earn a total of 393.00 from holding Runjian Communication Co or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Runjian Communication Co
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Runjian Communication |
Huaibei Mining and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Runjian Communication
The main advantage of trading using opposite Huaibei Mining and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining | Huaibei Mining vs. Rongsheng Petrochemical 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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