Correlation Between COL Digital and Dr Peng
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By analyzing existing cross correlation between COL Digital Publishing and Dr Peng Telecom, you can compare the effects of market volatilities on COL Digital and Dr Peng 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 COL Digital with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Dr Peng.
Diversification Opportunities for COL Digital and Dr Peng
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COL and 600804 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Dr Peng Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Peng Telecom and COL Digital 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 COL Digital Publishing are associated (or correlated) with Dr Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Peng Telecom has no effect on the direction of COL Digital i.e., COL Digital and Dr Peng go up and down completely randomly.
Pair Corralation between COL Digital and Dr Peng
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.59 times more return on investment than Dr Peng. However, COL Digital is 1.59 times more volatile than Dr Peng Telecom. It trades about 0.06 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about -0.02 per unit of risk. If you would invest 1,041 in COL Digital Publishing on October 15, 2024 and sell it today you would earn a total of 1,196 from holding COL Digital Publishing or generate 114.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Dr Peng Telecom
Performance |
| Timeline |
| COL Digital Publishing |
| Dr Peng Telecom |
COL Digital and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Dr Peng
The main advantage of trading using opposite COL Digital and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Dr Peng 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 Dr Peng will offset losses from the drop in Dr Peng's long position.| COL Digital vs. Sunwave Communications Co | COL Digital vs. Dongfeng Automobile Co | COL Digital vs. Songz Automobile Air | COL Digital vs. Huizhou Speed Wireless |
| Dr Peng vs. Holitech Technology Co | Dr Peng vs. Pengxin International Mining | Dr Peng vs. Shenzhen Silver Basis | Dr Peng vs. Kuangda Technology Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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