Correlation Between Dr Peng and Guangdong Qunxing
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By analyzing existing cross correlation between Dr Peng Telecom and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Dr Peng and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Guangdong Qunxing.
Diversification Opportunities for Dr Peng and Guangdong Qunxing
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 600804 and Guangdong is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Dr Peng i.e., Dr Peng and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Dr Peng and Guangdong Qunxing
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Guangdong Qunxing. In addition to that, Dr Peng is 1.1 times more volatile than Guangdong Qunxing Toys. It trades about -0.02 of its total potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.02 per unit of volatility. If you would invest 616.00 in Guangdong Qunxing Toys on November 5, 2024 and sell it today you would earn a total of 57.00 from holding Guangdong Qunxing Toys or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Dr Peng Telecom vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Dr Peng Telecom |
| Guangdong Qunxing Toys |
Dr Peng and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Guangdong Qunxing
The main advantage of trading using opposite Dr Peng and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Dr Peng vs. Shaanxi Meineng Clean | Dr Peng vs. Southern PublishingMedia Co | Dr Peng vs. Beijing Kaiwen Education | Dr Peng vs. Changjiang Publishing Media |
| Guangdong Qunxing vs. Eyebright Medical Technology | Guangdong Qunxing vs. Beijing HuaYuanYiTong Thermal | Guangdong Qunxing vs. Guangdong Jingyi Metal | Guangdong Qunxing vs. Shenyang Huitian Thermal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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