Correlation Between State Grid and Dr Peng
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By analyzing existing cross correlation between State Grid InformationCommunication and Dr Peng Telecom, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Dr Peng.
Diversification Opportunities for State Grid and Dr Peng
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and 600804 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic 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 State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and Dr Peng go up and down completely randomly.
Pair Corralation between State Grid and Dr Peng
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.79 times more return on investment than Dr Peng. However, State Grid InformationCommunication is 1.27 times less risky than Dr Peng. It trades about 0.05 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about -0.06 per unit of risk. If you would invest 1,568 in State Grid InformationCommunication on August 27, 2024 and sell it today you would earn a total of 514.00 from holding State Grid InformationCommunication or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Dr Peng Telecom
Performance |
| Timeline |
| State Grid Informati |
| Dr Peng Telecom |
State Grid and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Dr Peng
The main advantage of trading using opposite State Grid and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
| Dr Peng vs. Chengdu Kanghua Biological | Dr Peng vs. Beijing Wantai Biological | Dr Peng vs. Suzhou Novoprotein Scientific | Dr Peng vs. Aluminum Corp of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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