Correlation Between Dr Peng and Sunwave Communications
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By analyzing existing cross correlation between Dr Peng Telecom and Sunwave Communications Co, you can compare the effects of market volatilities on Dr Peng and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Sunwave Communications.
Diversification Opportunities for Dr Peng and Sunwave Communications
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600804 and Sunwave is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Dr Peng i.e., Dr Peng and Sunwave Communications go up and down completely randomly.
Pair Corralation between Dr Peng and Sunwave Communications
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.17 times more return on investment than Sunwave Communications. However, Dr Peng is 1.17 times more volatile than Sunwave Communications Co. It trades about 0.12 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.06 per unit of risk. If you would invest 123.00 in Dr Peng Telecom on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Dr Peng Telecom or generate 65.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Sunwave Communications Co
Performance |
| Timeline |
| Dr Peng Telecom |
| Sunwave Communications |
Dr Peng and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Sunwave Communications
The main advantage of trading using opposite Dr Peng and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Dr Peng vs. Shandong Sinoglory Health | Dr Peng vs. Haima Automobile Group | Dr Peng vs. Guangzhou Automobile Group | Dr Peng vs. Yunnan Jianzhijia Health Chain |
| Sunwave Communications vs. Northern United Publishing | Sunwave Communications vs. RoadMain T Co | Sunwave Communications vs. Broadex Technologies Co | Sunwave Communications vs. Beijing Kaiwen Education |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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