Correlation Between Ruijie Networks and 3 E

Can any of the company-specific risk be diversified away by investing in both Ruijie Networks and 3 E 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 Ruijie Networks and 3 E into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ruijie Networks Co and 3 E Network, you can compare the effects of market volatilities on Ruijie Networks and 3 E 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 Ruijie Networks with a short position of 3 E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruijie Networks and 3 E.

Diversification Opportunities for Ruijie Networks and 3 E

-0.53

Correlation Coefficient

Ruijie Networks  3 E

Excellent diversification

The 3 months correlation between Ruijie and MASK is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ruijie Networks Co and 3 E Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3 E Network and Ruijie Networks 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 Ruijie Networks Co are associated (or correlated) with 3 E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3 E Network has no effect on the direction of Ruijie Networks i.e., Ruijie Networks and 3 E go up and down completely randomly.

Pair Corralation between Ruijie Networks and 3 E

Assuming the 90 days trading horizon Ruijie Networks Co is expected to generate 0.83 times more return on investment than 3 E. However, Ruijie Networks Co is 1.2 times less risky than 3 E. It trades about 0.04 of its potential returns per unit of risk. 3 E Network is currently generating about -0.13 per unit of risk. If you would invest  6,816  in Ruijie Networks Co on August 13, 2025 and sell it today you would earn a total of  366.00  from holding Ruijie Networks Co or generate 5.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

Ruijie Networks Co  vs.  3 E Network

Ruijie Networks

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Ruijie Networks Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ruijie Networks sustained solid returns over the last few months and may actually be approaching a breakup point.

3 E Network

Risk-Adjusted Performance

Weakest

Over the last 90 days 3 E Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Ruijie Networks and 3 E

The main advantage of trading using opposite Ruijie Networks and 3 E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruijie Networks position performs unexpectedly, 3 E 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 3 E will offset losses from the drop in 3 E's long position.

The idea behind Ruijie Networks Co and 3 E Network 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.