Correlation Between Hainan Mining and Runjian Communication
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By analyzing existing cross correlation between Hainan Mining Co and Runjian Communication Co, you can compare the effects of market volatilities on Hainan 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 Hainan Mining with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Runjian Communication.
Diversification Opportunities for Hainan Mining and Runjian Communication
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Runjian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining 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 Hainan 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 Hainan Mining 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 Hainan Mining i.e., Hainan Mining and Runjian Communication go up and down completely randomly.
Pair Corralation between Hainan Mining and Runjian Communication
Assuming the 90 days trading horizon Hainan Mining is expected to generate 1.76 times less return on investment than Runjian Communication. In addition to that, Hainan Mining is 1.04 times more volatile than Runjian Communication Co. It trades about 0.11 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about 0.21 per unit of volatility. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Runjian Communication Co
Performance |
| Timeline |
| Hainan Mining |
| Runjian Communication |
Hainan Mining and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Runjian Communication
The main advantage of trading using opposite Hainan Mining and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan 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.| Hainan Mining vs. TianJin 712 Communication | Hainan Mining vs. Ningbo Construction Co | Hainan Mining vs. Tjk Machinery Tianjin | Hainan Mining vs. Eastern Communications 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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