Correlation Between Shanghai Jinfeng and Dr Peng
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Dr Peng Telecom, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Dr Peng.
Diversification Opportunities for Shanghai Jinfeng and Dr Peng
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and 600804 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng 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 Shanghai Jinfeng 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 Shanghai Jinfeng 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Dr Peng go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Dr Peng
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 0.53 times more return on investment than Dr Peng. However, Shanghai Jinfeng Wine is 1.89 times less risky than Dr Peng. It trades about 0.08 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 510.00 in Shanghai Jinfeng Wine on November 6, 2024 and sell it today you would earn a total of 11.00 from holding Shanghai Jinfeng Wine or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Dr Peng Telecom
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Dr Peng Telecom |
Shanghai Jinfeng and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Dr Peng
The main advantage of trading using opposite Shanghai Jinfeng and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.| Shanghai Jinfeng vs. Nanxing Furniture Machinery | Shanghai Jinfeng vs. Hangzhou Zhongya Machinery | Shanghai Jinfeng vs. Senci Electric Machinery | Shanghai Jinfeng vs. Tjk Machinery Tianjin |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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