Correlation Between Beijing Wantai and Runjian Communication
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By analyzing existing cross correlation between Beijing Wantai Biological and Runjian Communication Co, you can compare the effects of market volatilities on Beijing Wantai 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 Beijing Wantai with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Runjian Communication.
Diversification Opportunities for Beijing Wantai and Runjian Communication
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Runjian is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Beijing Wantai 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 Beijing Wantai Biological 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 Beijing Wantai i.e., Beijing Wantai and Runjian Communication go up and down completely randomly.
Pair Corralation between Beijing Wantai and Runjian Communication
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Wantai Biological is 1.96 times less risky than Runjian Communication. The stock trades about -0.1 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,974 in Runjian Communication Co on November 6, 2024 and sell it today you would earn a total of 238.00 from holding Runjian Communication Co or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Runjian Communication Co
Performance |
| Timeline |
| Beijing Wantai Biological |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Runjian Communication |
Beijing Wantai and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Runjian Communication
The main advantage of trading using opposite Beijing Wantai and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai 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.| Beijing Wantai vs. Smartgiant Technology Co | Beijing Wantai vs. Anhui Transport Consulting | Beijing Wantai vs. Tianjin Ruixin Technology | Beijing Wantai vs. ROPEOK Technology Group |
| Runjian Communication vs. Shandong Publishing Media | Runjian Communication vs. Hefei Metalforming Mach | Runjian Communication vs. JCHX Mining Management | Runjian Communication vs. Anhui Tongguan Copper |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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