Correlation Between Dr Peng and China Railway
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By analyzing existing cross correlation between Dr Peng Telecom and China Railway Construction, you can compare the effects of market volatilities on Dr Peng and China Railway 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 Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and China Railway.
Diversification Opportunities for Dr Peng and China Railway
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 600804 and China is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Dr Peng i.e., Dr Peng and China Railway go up and down completely randomly.
Pair Corralation between Dr Peng and China Railway
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.45 times more return on investment than China Railway. However, Dr Peng is 1.45 times more volatile than China Railway Construction. It trades about 0.22 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.0 per unit of risk. If you would invest 157.00 in Dr Peng Telecom on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Dr Peng Telecom or generate 21.66% 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 Railway Construction
Performance |
| Timeline |
| Dr Peng Telecom |
| China Railway Constr |
Dr Peng and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and China Railway
The main advantage of trading using opposite Dr Peng and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, China Railway 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 Railway will offset losses from the drop in China Railway's long position.| Dr Peng vs. Wuhan Hvsen Biotechnology | Dr Peng vs. Double Medical Technology | Dr Peng vs. Shanghai Rendu Biotechnology | Dr Peng vs. Innovative Medical Management |
| China Railway vs. Guangxi Wuzhou Communications | China Railway vs. UE Furniture Co | China Railway vs. Dr Peng Telecom | China Railway vs. Oppein Home Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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