Correlation Between Dr Peng and China Asset
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By analyzing existing cross correlation between Dr Peng Telecom and China Asset Management, you can compare the effects of market volatilities on Dr Peng and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and China Asset.
Diversification Opportunities for Dr Peng and China Asset
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 600804 and China is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Dr Peng i.e., Dr Peng and China Asset go up and down completely randomly.
Pair Corralation between Dr Peng and China Asset
Assuming the 90 days trading horizon Dr Peng is expected to generate 4.26 times less return on investment than China Asset. In addition to that, Dr Peng is 4.04 times more volatile than China Asset Management. It trades about 0.03 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.54 per unit of volatility. If you would invest 351.00 in China Asset Management on October 24, 2024 and sell it today you would earn a total of 41.00 from holding China Asset Management or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. China Asset Management
Performance |
| Timeline |
| Dr Peng Telecom |
| China Asset Management |
Dr Peng and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and China Asset
The main advantage of trading using opposite Dr Peng and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Dr Peng vs. Zhejiang JIULI Hi tech | Dr Peng vs. Hainan Airlines Co | Dr Peng vs. Beijing Seeyon Internet | Dr Peng vs. Fiberhome Telecommunication Technologies |
| China Asset vs. Aba Chemicals Corp | China Asset vs. Huizhou Speed Wireless | China Asset vs. Kingclean Electric Co | China Asset vs. COL Digital Publishing |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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