Correlation Between Dr Peng and Shandong Mining
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By analyzing existing cross correlation between Dr Peng Telecom and Shandong Mining Machinery, you can compare the effects of market volatilities on Dr Peng and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Shandong Mining.
Diversification Opportunities for Dr Peng and Shandong Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 600804 and Shandong is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Dr Peng i.e., Dr Peng and Shandong Mining go up and down completely randomly.
Pair Corralation between Dr Peng and Shandong Mining
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.0 times more return on investment than Shandong Mining. However, Dr Peng is 1.0 times more volatile than Shandong Mining Machinery. It trades about 0.11 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.0 per unit of risk. If you would invest 180.00 in Dr Peng Telecom on October 25, 2024 and sell it today you would earn a total of 14.00 from holding Dr Peng Telecom or generate 7.78% 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. Shandong Mining Machinery
Performance |
| Timeline |
| Dr Peng Telecom |
| Shandong Mining Machinery |
Dr Peng and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Shandong Mining
The main advantage of trading using opposite Dr Peng and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Dr Peng vs. Industrial and Commercial | Dr Peng vs. Agricultural Bank of | Dr Peng vs. China Construction Bank | Dr Peng vs. Bank of China |
| Shandong Mining vs. Kweichow Moutai Co | Shandong Mining vs. Contemporary Amperex Technology | Shandong Mining vs. Beijing Roborock Technology | Shandong Mining vs. BYD Co Ltd |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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