Correlation Between Xinjiang Baodi and Runjian Communication
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Runjian Communication Co, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Runjian Communication.
Diversification Opportunities for Xinjiang Baodi and Runjian Communication
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Runjian is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Runjian Communication go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Runjian Communication
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.28 times less risky than Runjian Communication. The stock trades about -0.19 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,183 in Runjian Communication Co on October 17, 2024 and sell it today you would lose (89.00) from holding Runjian Communication Co or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Runjian Communication Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Runjian Communication |
Xinjiang Baodi and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Runjian Communication
The main advantage of trading using opposite Xinjiang Baodi and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Dr Peng Telecom | Xinjiang Baodi vs. Peoples Insurance of | Xinjiang Baodi vs. Iat Automobile Technology | Xinjiang Baodi vs. China Eastern Airlines |
| Runjian Communication vs. Ningbo Jintian Copper | Runjian Communication vs. Ye Chiu Metal | Runjian Communication vs. Dongfeng Automobile Co | Runjian Communication vs. Xinjiang Baodi Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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