Correlation Between Ningbo Construction and Runjian Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Construction Co and Runjian Communication Co, you can compare the effects of market volatilities on Ningbo Construction 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 Ningbo Construction with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Runjian Communication.
Diversification Opportunities for Ningbo Construction and Runjian Communication
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Runjian is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Ningbo Construction 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 Ningbo Construction Co 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 Ningbo Construction i.e., Ningbo Construction and Runjian Communication go up and down completely randomly.
Pair Corralation between Ningbo Construction and Runjian Communication
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 0.81 times more return on investment than Runjian Communication. However, Ningbo Construction Co is 1.24 times less risky than Runjian Communication. It trades about 0.01 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.01 per unit of risk. If you would invest 443.00 in Ningbo Construction Co on October 11, 2024 and sell it today you would lose (27.00) from holding Ningbo Construction Co or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Runjian Communication Co
Performance |
| Timeline |
| Ningbo Construction |
| Runjian Communication |
Ningbo Construction and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Runjian Communication
The main advantage of trading using opposite Ningbo Construction and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction 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.| Ningbo Construction vs. ChengDu Hi Tech Development | Ningbo Construction vs. Western Metal Materials | Ningbo Construction vs. Unisplendour Corp | Ningbo Construction vs. Hengli Industrial Development |
| Runjian Communication vs. Heilongjiang Publishing Media | Runjian Communication vs. Ligao Foods CoLtd | Runjian Communication vs. Youyou Foods Co | Runjian Communication vs. Guangdong Wens Foodstuff |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |