Correlation Between Dr Peng and Hua Xia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dr Peng Telecom and Hua Xia Bank, you can compare the effects of market volatilities on Dr Peng and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Hua Xia.
Diversification Opportunities for Dr Peng and Hua Xia
Very weak diversification
The 3 months correlation between 600804 and Hua is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Dr Peng i.e., Dr Peng and Hua Xia go up and down completely randomly.
Pair Corralation between Dr Peng and Hua Xia
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Hua Xia. In addition to that, Dr Peng is 3.42 times more volatile than Hua Xia Bank. It trades about -0.11 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.07 per unit of volatility. If you would invest 782.00 in Hua Xia Bank on October 9, 2024 and sell it today you would lose (15.00) from holding Hua Xia Bank or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Hua Xia Bank
Performance |
| Timeline |
| Dr Peng Telecom |
| Hua Xia Bank |
Dr Peng and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Hua Xia
The main advantage of trading using opposite Dr Peng and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Dr Peng vs. City Development Environment | Dr Peng vs. Shandong Iron and | Dr Peng vs. Jinsanjiang Silicon Material | Dr Peng vs. Changjiang Jinggong Steel |
| Hua Xia vs. Glodon Software Co | Hua Xia vs. Zhongrun Resources Investment | Hua Xia vs. Inspur Software Co | Hua Xia vs. Jointo Energy Investment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |