Correlation Between Dr Peng and Huatian Hotel
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By analyzing existing cross correlation between Dr Peng Telecom and Huatian Hotel Group, you can compare the effects of market volatilities on Dr Peng and Huatian Hotel 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 Dr Peng with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Huatian Hotel.
Diversification Opportunities for Dr Peng and Huatian Hotel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 600804 and Huatian is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Dr Peng 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 Dr Peng Telecom are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Dr Peng i.e., Dr Peng and Huatian Hotel go up and down completely randomly.
Pair Corralation between Dr Peng and Huatian Hotel
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.48 times more return on investment than Huatian Hotel. However, Dr Peng is 1.48 times more volatile than Huatian Hotel Group. It trades about 0.08 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.1 per unit of risk. If you would invest 189.00 in Dr Peng Telecom on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Dr Peng Telecom or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dr Peng Telecom vs. Huatian Hotel Group
Performance |
| Timeline |
| Dr Peng Telecom |
| Huatian Hotel Group |
Dr Peng and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Huatian Hotel
The main advantage of trading using opposite Dr Peng and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Dr Peng vs. Holitech Technology Co | Dr Peng vs. Gome Telecom Equipment | Dr Peng vs. Zotye Automobile Co | Dr Peng vs. Danhua Chemical Technology |
| Huatian Hotel vs. Runjian Communication Co | Huatian Hotel vs. Dr Peng Telecom | Huatian Hotel vs. Sunny Loan Top | Huatian Hotel vs. Shanghai Yaoji Playing |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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