Correlation Between Dr Peng and Ye Chiu
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By analyzing existing cross correlation between Dr Peng Telecom and Ye Chiu Metal, you can compare the effects of market volatilities on Dr Peng and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Ye Chiu.
Diversification Opportunities for Dr Peng and Ye Chiu
Average diversification
The 3 months correlation between 600804 and 601388 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Dr Peng i.e., Dr Peng and Ye Chiu go up and down completely randomly.
Pair Corralation between Dr Peng and Ye Chiu
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.71 times more return on investment than Ye Chiu. However, Dr Peng is 1.71 times more volatile than Ye Chiu Metal. It trades about -0.04 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.12 per unit of risk. If you would invest 204.00 in Dr Peng Telecom on October 30, 2024 and sell it today you would lose (19.00) from holding Dr Peng Telecom or give up 9.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Ye Chiu Metal
Performance |
| Timeline |
| Dr Peng Telecom |
| Ye Chiu Metal |
Dr Peng and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Ye Chiu
The main advantage of trading using opposite Dr Peng and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Dr Peng vs. Anhui Gujing Distillery | Dr Peng vs. Guangdong Transtek Medical | Dr Peng vs. Shenzhen Glory Medical | Dr Peng vs. Allgens Medical Technology |
| Ye Chiu vs. Tianshan Aluminum Group | Ye Chiu vs. Suzhou Weizhixiang Food | Ye Chiu vs. Shanghai Yanpu Metal | Ye Chiu vs. CITIC Metal Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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