Correlation Between Dr Peng and Beken Corp
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By analyzing existing cross correlation between Dr Peng Telecom and Beken Corp, you can compare the effects of market volatilities on Dr Peng and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Beken Corp.
Diversification Opportunities for Dr Peng and Beken Corp
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600804 and Beken is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Dr Peng i.e., Dr Peng and Beken Corp go up and down completely randomly.
Pair Corralation between Dr Peng and Beken Corp
Assuming the 90 days trading horizon Dr Peng Telecom is expected to under-perform the Beken Corp. In addition to that, Dr Peng is 1.12 times more volatile than Beken Corp. It trades about -0.02 of its total potential returns per unit of risk. Beken Corp is currently generating about 0.02 per unit of volatility. If you would invest 2,922 in Beken Corp on September 26, 2024 and sell it today you would earn a total of 173.00 from holding Beken Corp or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Beken Corp
Performance |
| Timeline |
| Dr Peng Telecom |
| Beken Corp |
Dr Peng and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Beken Corp
The main advantage of trading using opposite Dr Peng and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Dr Peng vs. Ligao Foods CoLtd | Dr Peng vs. Zhongyin Babi Food | Dr Peng vs. Xinjiang Tianrun Dairy | Dr Peng vs. Fujian Anjoy Foods |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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