Correlation Between Dr Peng and Western Metal
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By analyzing existing cross correlation between Dr Peng Telecom and Western Metal Materials, you can compare the effects of market volatilities on Dr Peng and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Western Metal.
Diversification Opportunities for Dr Peng and Western Metal
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 600804 and Western is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Dr Peng i.e., Dr Peng and Western Metal go up and down completely randomly.
Pair Corralation between Dr Peng and Western Metal
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Western Metal. In addition to that, Dr Peng is 1.36 times more volatile than Western Metal Materials. It trades about -0.02 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of volatility. If you would invest 1,612 in Western Metal Materials on October 30, 2024 and sell it today you would earn a total of 88.00 from holding Western Metal Materials or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Western Metal Materials
Performance |
| Timeline |
| Dr Peng Telecom |
| Western Metal Materials |
Dr Peng and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Western Metal
The main advantage of trading using opposite Dr Peng and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Dr Peng vs. Anhui Gujing Distillery | Dr Peng vs. Guangdong Transtek Medical | Dr Peng vs. Shenzhen Glory Medical | Dr Peng vs. Allgens Medical Technology |
| Western Metal vs. Industrial Bank Co | Western Metal vs. Hangzhou Arcvideo Technology | Western Metal vs. Ningbo Tech Bank Co | Western Metal vs. Citic Guoan Wine |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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