Correlation Between Xinjiang Tianrun and Dr Peng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Dr Peng Telecom, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Dr Peng.
Diversification Opportunities for Xinjiang Tianrun and Dr Peng
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and 600804 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy 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 Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Dr Peng go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Dr Peng
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Dr Peng. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.63 times less risky than Dr Peng. The stock trades about -0.41 of its potential returns per unit of risk. The Dr Peng Telecom is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Dr Peng Telecom on October 15, 2024 and sell it today you would lose (11.00) from holding Dr Peng Telecom or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Dr Peng Telecom
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Dr Peng Telecom |
Xinjiang Tianrun and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Dr Peng
The main advantage of trading using opposite Xinjiang Tianrun and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Jilin Jlu Communication | Xinjiang Tianrun vs. Liuzhou Chemical Industry | Xinjiang Tianrun vs. Shenyang Chemical Industry | Xinjiang Tianrun vs. HeBei Jinniu Chemical |
| Dr Peng vs. Kuangda Technology Group | Dr Peng vs. Dhc Software Co | Dr Peng vs. HUAQIN TECHNOLOGY LTD | Dr Peng vs. HanS Laser Tech |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |