Correlation Between GreenTech Environmental and Runjian Communication
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By analyzing existing cross correlation between GreenTech Environmental Co and Runjian Communication Co, you can compare the effects of market volatilities on GreenTech Environmental 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 GreenTech Environmental with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Runjian Communication.
Diversification Opportunities for GreenTech Environmental and Runjian Communication
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenTech and Runjian is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental 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 GreenTech Environmental 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 GreenTech Environmental 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 GreenTech Environmental i.e., GreenTech Environmental and Runjian Communication go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Runjian Communication
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to generate 1.14 times more return on investment than Runjian Communication. However, GreenTech Environmental is 1.14 times more volatile than Runjian Communication Co. It trades about 0.06 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.07 per unit of risk. If you would invest 1,138 in GreenTech Environmental Co on September 28, 2024 and sell it today you would earn a total of 237.00 from holding GreenTech Environmental Co or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Runjian Communication Co
Performance |
| Timeline |
| GreenTech Environmental |
| Runjian Communication |
GreenTech Environmental and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Runjian Communication
The main advantage of trading using opposite GreenTech Environmental and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental 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.| GreenTech Environmental vs. BeiGene | GreenTech Environmental vs. Kweichow Moutai Co | GreenTech Environmental vs. Beijing Roborock Technology | GreenTech Environmental vs. G bits Network Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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