Correlation Between Dr Peng and Sinomine Resource
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dr Peng Telecom and Sinomine Resource Exploration, you can compare the effects of market volatilities on Dr Peng and Sinomine Resource 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 Sinomine Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Sinomine Resource.
Diversification Opportunities for Dr Peng and Sinomine Resource
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 600804 and Sinomine is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Sinomine Resource Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomine Resource 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 Sinomine Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomine Resource has no effect on the direction of Dr Peng i.e., Dr Peng and Sinomine Resource go up and down completely randomly.
Pair Corralation between Dr Peng and Sinomine Resource
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 2.04 times more return on investment than Sinomine Resource. However, Dr Peng is 2.04 times more volatile than Sinomine Resource Exploration. It trades about -0.1 of its potential returns per unit of risk. Sinomine Resource Exploration is currently generating about -0.23 per unit of risk. If you would invest 213.00 in Dr Peng Telecom on October 14, 2024 and sell it today you would lose (22.00) from holding Dr Peng Telecom or give up 10.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Sinomine Resource Exploration
Performance |
| Timeline |
| Dr Peng Telecom |
| Sinomine Resource |
Dr Peng and Sinomine Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Sinomine Resource
The main advantage of trading using opposite Dr Peng and Sinomine Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Sinomine Resource 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 Sinomine Resource will offset losses from the drop in Sinomine Resource's long position.| Dr Peng vs. Kuangda Technology Group | Dr Peng vs. Dhc Software Co | Dr Peng vs. HUAQIN TECHNOLOGY LTD | Dr Peng vs. HanS Laser Tech |
| Sinomine Resource vs. Shanghai Phichem Material | Sinomine Resource vs. Dr Peng Telecom | Sinomine Resource vs. Bank of Communications | Sinomine Resource vs. Jinsanjiang Silicon Material |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |