Correlation Between Jiangxi Hengda and Runjian Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Runjian Communication Co, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Runjian Communication.
Diversification Opportunities for Jiangxi Hengda and Runjian Communication
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Runjian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda 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 Jiangxi Hengda 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 Jiangxi Hengda 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 Jiangxi Hengda i.e., Jiangxi Hengda and Runjian Communication go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Runjian Communication
Assuming the 90 days trading horizon Jiangxi Hengda is expected to generate 1.26 times less return on investment than Runjian Communication. In addition to that, Jiangxi Hengda is 1.07 times more volatile than Runjian Communication Co. It trades about 0.09 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about 0.12 per unit of volatility. If you would invest 2,686 in Runjian Communication Co on September 25, 2024 and sell it today you would earn a total of 630.00 from holding Runjian Communication Co or generate 23.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Runjian Communication Co
Performance |
Timeline |
Jiangxi Hengda Hi |
Runjian Communication |
Jiangxi Hengda and Runjian Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Hengda and Runjian Communication
The main advantage of trading using opposite Jiangxi Hengda and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |