Correlation Between Dr Peng and Guangzhou Haige
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By analyzing existing cross correlation between Dr Peng Telecom and Guangzhou Haige Communications, you can compare the effects of market volatilities on Dr Peng and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Guangzhou Haige.
Diversification Opportunities for Dr Peng and Guangzhou Haige
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 600804 and Guangzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Dr Peng i.e., Dr Peng and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Dr Peng and Guangzhou Haige
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.18 times more return on investment than Guangzhou Haige. However, Dr Peng is 1.18 times more volatile than Guangzhou Haige Communications. It trades about 0.26 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.14 per unit of risk. If you would invest 156.00 in Dr Peng Telecom on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Dr Peng Telecom or generate 24.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Dr Peng Telecom |
| Guangzhou Haige Comm |
Dr Peng and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Guangzhou Haige
The main advantage of trading using opposite Dr Peng and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Dr Peng vs. Tibet Huayu Mining | Dr Peng vs. Anhui Transport Consulting | Dr Peng vs. Zhongshan Broad Ocean Motor | Dr Peng vs. Jiangsu Broadcasting Cable |
| Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. NAURA Technology Group | Guangzhou Haige vs. APT Medical | Guangzhou Haige vs. Contemporary Amperex Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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