Correlation Between Railway Signal and Renxin New
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By analyzing existing cross correlation between Railway Signal Communication and Renxin New Material, you can compare the effects of market volatilities on Railway Signal and Renxin New 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 Railway Signal with a short position of Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Railway Signal and Renxin New.
Diversification Opportunities for Railway Signal and Renxin New
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Railway and Renxin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Railway Signal Communication and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material and Railway Signal 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 Railway Signal Communication are associated (or correlated) with Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Railway Signal i.e., Railway Signal and Renxin New go up and down completely randomly.
Pair Corralation between Railway Signal and Renxin New
Assuming the 90 days trading horizon Railway Signal is expected to generate 5.39 times less return on investment than Renxin New. But when comparing it to its historical volatility, Railway Signal Communication is 1.14 times less risky than Renxin New. It trades about 0.02 of its potential returns per unit of risk. Renxin New Material is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,189 in Renxin New Material on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Renxin New Material or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Railway Signal Communication vs. Renxin New Material
Performance |
| Timeline |
| Railway Signal Commu |
| Renxin New Material |
Railway Signal and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Railway Signal and Renxin New
The main advantage of trading using opposite Railway Signal and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Railway Signal position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New's long position.| Railway Signal vs. Renxin New Material | Railway Signal vs. CICC Fund Management | Railway Signal vs. Super Dragon Engineering Plastics | Railway Signal vs. Sunny Loan Top |
| Renxin New vs. Zijin Mining Group | Renxin New vs. Baoshan Iron Steel | Renxin New vs. Rongsheng Petrochemical Co | Renxin New vs. Hoshine Silicon Ind |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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