Correlation Between Dr Peng and Xiamen Bank
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By analyzing existing cross correlation between Dr Peng Telecom and Xiamen Bank Co, you can compare the effects of market volatilities on Dr Peng and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Xiamen Bank.
Diversification Opportunities for Dr Peng and Xiamen Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 600804 and Xiamen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Dr Peng i.e., Dr Peng and Xiamen Bank go up and down completely randomly.
Pair Corralation between Dr Peng and Xiamen Bank
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Xiamen Bank. In addition to that, Dr Peng is 2.54 times more volatile than Xiamen Bank Co. It trades about -0.02 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.02 per unit of volatility. If you would invest 519.00 in Xiamen Bank Co on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Xiamen Bank Co or generate 7.13% 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. Xiamen Bank Co
Performance |
| Timeline |
| Dr Peng Telecom |
| Xiamen Bank |
Dr Peng and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Xiamen Bank
The main advantage of trading using opposite Dr Peng and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Dr Peng vs. Anhui Fuhuang Steel | Dr Peng vs. Jiangxi JDL Environmental | Dr Peng vs. Yuan Longping High tech | Dr Peng vs. Fujian Nanwang Environment |
| Xiamen Bank vs. Heilongjiang Transport Development | Xiamen Bank vs. Zhejiang Yayi Metal | Xiamen Bank vs. Rising Nonferrous Metals | Xiamen Bank vs. Guangdong Jingyi Metal |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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