Correlation Between Dr Peng and Chengdu Spaceon
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By analyzing existing cross correlation between Dr Peng Telecom and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Dr Peng and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Chengdu Spaceon.
Diversification Opportunities for Dr Peng and Chengdu Spaceon
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 600804 and Chengdu is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Dr Peng i.e., Dr Peng and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Dr Peng and Chengdu Spaceon
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.27 times more return on investment than Chengdu Spaceon. However, Dr Peng is 1.27 times more volatile than Chengdu Spaceon Electronics. It trades about 0.11 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.08 per unit of risk. If you would invest 154.00 in Dr Peng Telecom on October 18, 2024 and sell it today you would earn a total of 52.00 from holding Dr Peng Telecom or generate 33.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Dr Peng Telecom |
| Chengdu Spaceon Elec |
Dr Peng and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Chengdu Spaceon
The main advantage of trading using opposite Dr Peng and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Dr Peng vs. Suzhou Oriental Semiconductor | Dr Peng vs. StarPower Semiconductor | Dr Peng vs. Tongxing Environmental Protection | Dr Peng vs. GigaDevice SemiconductorBeiji |
| Chengdu Spaceon vs. Anhui Shiny Electronic | Chengdu Spaceon vs. Anhui Jianghuai Automobile | Chengdu Spaceon vs. Ningbo Fangzheng Automobile | Chengdu Spaceon vs. Xinya Electronic Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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