Correlation Between Dr Peng and Kailong High
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By analyzing existing cross correlation between Dr Peng Telecom and Kailong High Technology, you can compare the effects of market volatilities on Dr Peng and Kailong High 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 Kailong High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Kailong High.
Diversification Opportunities for Dr Peng and Kailong High
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 600804 and Kailong is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Kailong High Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kailong High Technology 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 Kailong High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kailong High Technology has no effect on the direction of Dr Peng i.e., Dr Peng and Kailong High go up and down completely randomly.
Pair Corralation between Dr Peng and Kailong High
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 0.97 times more return on investment than Kailong High. However, Dr Peng Telecom is 1.03 times less risky than Kailong High. It trades about 0.1 of its potential returns per unit of risk. Kailong High Technology is currently generating about -0.12 per unit of risk. If you would invest 192.00 in Dr Peng Telecom on October 18, 2024 and sell it today you would earn a total of 14.00 from holding Dr Peng Telecom or generate 7.29% 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. Kailong High Technology
Performance |
| Timeline |
| Dr Peng Telecom |
| Kailong High Technology |
Dr Peng and Kailong High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Kailong High
The main advantage of trading using opposite Dr Peng and Kailong High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Kailong High 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 Kailong High will offset losses from the drop in Kailong High'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 |
| Kailong High vs. Sanbo Hospital Management | Kailong High vs. Chengdu Spaceon Electronics | Kailong High vs. Dr Peng Telecom | Kailong High vs. State Grid InformationCommunication |
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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