Correlation Between 159681 and Runjian Communication
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By analyzing existing cross correlation between 159681 and Runjian Communication Co, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Runjian Communication.
Diversification Opportunities for 159681 and Runjian Communication
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159681 and Runjian is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and 159681 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 159681 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 159681 i.e., 159681 and Runjian Communication go up and down completely randomly.
Pair Corralation between 159681 and Runjian Communication
Assuming the 90 days trading horizon 159681 is expected to under-perform the Runjian Communication. In addition to that, 159681 is 1.08 times more volatile than Runjian Communication Co. It trades about -0.07 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about -0.03 per unit of volatility. If you would invest 3,004 in Runjian Communication Co on September 6, 2024 and sell it today you would lose (65.00) from holding Runjian Communication Co or give up 2.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
159681 vs. Runjian Communication Co
Performance |
Timeline |
159681 |
Runjian Communication |
159681 and Runjian Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159681 and Runjian Communication
The main advantage of trading using opposite 159681 and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. Loctek Ergonomic Technology |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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