Correlation Between Tonghua Grape and Dr Peng
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By analyzing existing cross correlation between Tonghua Grape Wine and Dr Peng Telecom, you can compare the effects of market volatilities on Tonghua Grape 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 Tonghua Grape with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Dr Peng.
Diversification Opportunities for Tonghua Grape and Dr Peng
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tonghua and 600804 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine 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 Tonghua Grape 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 Tonghua Grape Wine 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 Tonghua Grape i.e., Tonghua Grape and Dr Peng go up and down completely randomly.
Pair Corralation between Tonghua Grape and Dr Peng
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to generate 0.78 times more return on investment than Dr Peng. However, Tonghua Grape Wine is 1.28 times less risky than Dr Peng. It trades about -0.07 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about -0.12 per unit of risk. If you would invest 268.00 in Tonghua Grape Wine on November 6, 2024 and sell it today you would lose (9.00) from holding Tonghua Grape Wine or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Dr Peng Telecom
Performance |
| Timeline |
| Tonghua Grape Wine |
| Dr Peng Telecom |
Tonghua Grape and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Dr Peng
The main advantage of trading using opposite Tonghua Grape and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape 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.| Tonghua Grape vs. Queclink Wireless Solutions | Tonghua Grape vs. Easyhome New Retail | Tonghua Grape vs. Fiberhome Telecommunication Technologies | Tonghua Grape vs. Nanxing Furniture Machinery |
| Dr Peng vs. Ping An Insurance | Dr Peng vs. Beijing Enlight Media | Dr Peng vs. Shandong Publishing Media | Dr Peng vs. Yingde Greatchem Chemicals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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