Correlation Between Zhejiang JIULI and Runjian Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Runjian Communication Co, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Runjian Communication.
Diversification Opportunities for Zhejiang JIULI and Runjian Communication
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Runjian is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Runjian Communication go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Runjian Communication
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 16.48 times less return on investment than Runjian Communication. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 1.71 times less risky than Runjian Communication. It trades about 0.02 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,963 in Runjian Communication Co on September 25, 2024 and sell it today you would earn a total of 353.00 from holding Runjian Communication Co or generate 11.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Runjian Communication Co
Performance |
Timeline |
Zhejiang JIULI Hi |
Runjian Communication |
Zhejiang JIULI and Runjian Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang JIULI and Runjian Communication
The main advantage of trading using opposite Zhejiang JIULI and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Shandong Gold Mining | Zhejiang JIULI vs. Rongsheng Petrochemical Co | Zhejiang JIULI vs. Inner Mongolia BaoTou |
Runjian Communication vs. Jiangxi Sunshine Dairy | Runjian Communication vs. Eastroc Beverage Group | Runjian Communication vs. GRG Banking Equipment | Runjian Communication vs. Zhongyin Babi Food |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |