Correlation Between Dr Peng and China Citic
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By analyzing existing cross correlation between Dr Peng Telecom and China Citic Bank, you can compare the effects of market volatilities on Dr Peng and China Citic 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 Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and China Citic.
Diversification Opportunities for Dr Peng and China Citic
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 600804 and China is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Dr Peng i.e., Dr Peng and China Citic go up and down completely randomly.
Pair Corralation between Dr Peng and China Citic
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 3.28 times more return on investment than China Citic. However, Dr Peng is 3.28 times more volatile than China Citic Bank. It trades about 0.04 of its potential returns per unit of risk. China Citic Bank is currently generating about -0.05 per unit of risk. If you would invest 202.00 in Dr Peng Telecom on October 17, 2024 and sell it today you would earn a total of 4.00 from holding Dr Peng Telecom or generate 1.98% 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 Citic Bank
Performance |
| Timeline |
| Dr Peng Telecom |
| China Citic Bank |
Dr Peng and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and China Citic
The main advantage of trading using opposite Dr Peng and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, China Citic 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 Citic will offset losses from the drop in China Citic's long position.| Dr Peng vs. Suzhou Oriental Semiconductor | Dr Peng vs. StarPower Semiconductor | Dr Peng vs. Tongxing Environmental Protection | Dr Peng vs. GigaDevice SemiconductorBeiji |
| China Citic vs. Shengda Mining Co | China Citic vs. AVIC Fund Management | China Citic vs. China Asset Management | China Citic vs. Tibet Huayu Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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