Correlation Between Dr Peng and Tongyu Communication
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By analyzing existing cross correlation between Dr Peng Telecom and Tongyu Communication, you can compare the effects of market volatilities on Dr Peng and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Tongyu Communication.
Diversification Opportunities for Dr Peng and Tongyu Communication
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600804 and Tongyu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Dr Peng i.e., Dr Peng and Tongyu Communication go up and down completely randomly.
Pair Corralation between Dr Peng and Tongyu Communication
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Dr Peng Telecom is 1.27 times less risky than Tongyu Communication. The stock trades about -1.03 of its potential returns per unit of risk. The Tongyu Communication is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,516 in Tongyu Communication on January 22, 2025 and sell it today you would lose (28.00) from holding Tongyu Communication or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dr Peng Telecom vs. Tongyu Communication
Performance |
| Timeline |
| Dr Peng Telecom |
| Tongyu Communication |
Dr Peng and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Tongyu Communication
The main advantage of trading using opposite Dr Peng and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Dr Peng vs. Hainan Mining Co | Dr Peng vs. Yoantion Industrial IncLtd | Dr Peng vs. China Minmetals Rare | Dr Peng vs. Guangdong Jingyi Metal |
| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. Bank of China |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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