Correlation Between CIMG and Ruanyun Edai
Can any of the company-specific risk be diversified away by investing in both CIMG and Ruanyun Edai at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CIMG and Ruanyun Edai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIMG Inc and Ruanyun Edai Technology, you can compare the effects of market volatilities on CIMG and Ruanyun Edai 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 CIMG with a short position of Ruanyun Edai. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMG and Ruanyun Edai.
Diversification Opportunities for CIMG and Ruanyun Edai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMG and Ruanyun is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CIMG Inc and Ruanyun Edai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ruanyun Edai Technology and CIMG 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 CIMG Inc are associated (or correlated) with Ruanyun Edai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ruanyun Edai Technology has no effect on the direction of CIMG i.e., CIMG and Ruanyun Edai go up and down completely randomly.
Pair Corralation between CIMG and Ruanyun Edai
Considering the 90-day investment horizon CIMG Inc is expected to generate 1.57 times more return on investment than Ruanyun Edai. However, CIMG is 1.57 times more volatile than Ruanyun Edai Technology. It trades about -0.05 of its potential returns per unit of risk. Ruanyun Edai Technology is currently generating about -0.18 per unit of risk. If you would invest 24.00 in CIMG Inc on August 14, 2025 and sell it today you would lose (7.00) from holding CIMG Inc or give up 29.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMG Inc vs. Ruanyun Edai Technology
Performance |
| Timeline |
| CIMG Inc |
| Ruanyun Edai Technology |
CIMG and Ruanyun Edai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMG and Ruanyun Edai
The main advantage of trading using opposite CIMG and Ruanyun Edai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMG position performs unexpectedly, Ruanyun Edai 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 Ruanyun Edai will offset losses from the drop in Ruanyun Edai's long position.The idea behind CIMG Inc and Ruanyun Edai Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ruanyun Edai vs. 17 Education Technology | Ruanyun Edai vs. Jianzhi Education Technology | Ruanyun Edai vs. Paranovus Entertainment Technology | Ruanyun Edai vs. Farmer Bros Co |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |