Correlation Between Dr Peng and Wuhan Hvsen
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By analyzing existing cross correlation between Dr Peng Telecom and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Dr Peng and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Wuhan Hvsen.
Diversification Opportunities for Dr Peng and Wuhan Hvsen
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 600804 and Wuhan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Dr Peng i.e., Dr Peng and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Dr Peng and Wuhan Hvsen
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.31 times more return on investment than Wuhan Hvsen. However, Dr Peng is 1.31 times more volatile than Wuhan Hvsen Biotechnology. It trades about 0.08 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 189.00 in Dr Peng Telecom on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Dr Peng Telecom or generate 4.76% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Dr Peng Telecom |
| Wuhan Hvsen Biotechnology |
Dr Peng and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Wuhan Hvsen
The main advantage of trading using opposite Dr Peng and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Dr Peng vs. Holitech Technology Co | Dr Peng vs. Gome Telecom Equipment | Dr Peng vs. Zotye Automobile Co | Dr Peng vs. Danhua Chemical Technology |
| Wuhan Hvsen vs. Eastern Air Logistics | Wuhan Hvsen vs. Harbin Air Conditioning | Wuhan Hvsen vs. Sublime China Information | Wuhan Hvsen vs. Cultural Investment Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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