Correlation Between Dr Peng and Bank of Communications
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By analyzing existing cross correlation between Dr Peng Telecom and Bank of Communications, you can compare the effects of market volatilities on Dr Peng and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Bank of Communications.
Diversification Opportunities for Dr Peng and Bank of Communications
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between 600804 and Bank is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Dr Peng i.e., Dr Peng and Bank of Communications go up and down completely randomly.
Pair Corralation between Dr Peng and Bank of Communications
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Bank of Communications. In addition to that, Dr Peng is 2.64 times more volatile than Bank of Communications. It trades about -0.02 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.08 per unit of volatility. If you would invest 457.00 in Bank of Communications on October 15, 2024 and sell it today you would earn a total of 283.00 from holding Bank of Communications or generate 61.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Bank of Communications
Performance |
| Timeline |
| Dr Peng Telecom |
| Bank of Communications |
Dr Peng and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Bank of Communications
The main advantage of trading using opposite Dr Peng and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Dr Peng vs. Holitech Technology Co | Dr Peng vs. Pengxin International Mining | Dr Peng vs. Shenzhen Silver Basis | Dr Peng vs. Kuangda Technology 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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