Correlation Between Dr Peng and Hangzhou Pinming
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By analyzing existing cross correlation between Dr Peng Telecom and Hangzhou Pinming Software, you can compare the effects of market volatilities on Dr Peng and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Hangzhou Pinming.
Diversification Opportunities for Dr Peng and Hangzhou Pinming
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 600804 and Hangzhou is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Dr Peng i.e., Dr Peng and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Dr Peng and Hangzhou Pinming
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.37 times more return on investment than Hangzhou Pinming. However, Dr Peng is 1.37 times more volatile than Hangzhou Pinming Software. It trades about 0.11 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about -0.15 per unit of risk. If you would invest 180.00 in Dr Peng Telecom on October 25, 2024 and sell it today you would earn a total of 14.00 from holding Dr Peng Telecom or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Dr Peng Telecom |
| Hangzhou Pinming Software |
Dr Peng and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Hangzhou Pinming
The main advantage of trading using opposite Dr Peng and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Dr Peng vs. Industrial and Commercial | Dr Peng vs. Agricultural Bank of | Dr Peng vs. China Construction Bank | Dr Peng vs. Bank of China |
| Hangzhou Pinming vs. Kweichow Moutai Co | Hangzhou Pinming vs. NAURA Technology Group | Hangzhou Pinming vs. APT Medical | Hangzhou Pinming vs. BYD Co Ltd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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