Correlation Between Dr Peng and V V
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By analyzing existing cross correlation between Dr Peng Telecom and V V Food, you can compare the effects of market volatilities on Dr Peng and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and V V.
Diversification Opportunities for Dr Peng and V V
Very weak diversification
The 3 months correlation between 600804 and 600300 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Dr Peng i.e., Dr Peng and V V go up and down completely randomly.
Pair Corralation between Dr Peng and V V
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the V V. In addition to that, Dr Peng is 2.08 times more volatile than V V Food. It trades about -0.01 of its total potential returns per unit of risk. V V Food is currently generating about 0.0 per unit of volatility. If you would invest 344.00 in V V Food on September 12, 2024 and sell it today you would lose (10.00) from holding V V Food or give up 2.91% 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. V V Food
Performance |
| Timeline |
| Dr Peng Telecom |
| V V Food |
Dr Peng and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and V V
The main advantage of trading using opposite Dr Peng and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Dr Peng vs. Kweichow Moutai Co | Dr Peng vs. Shenzhen Mindray Bio Medical | Dr Peng vs. G bits Network Technology | Dr Peng vs. Beijing Roborock Technology |
| V V vs. Guangzhou Haige Communications | V V vs. Eastern Communications Co | V V vs. Orinko Advanced Plastics | V V vs. Dr Peng Telecom |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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