Correlation Between Dr Peng and Beijing YanDong
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By analyzing existing cross correlation between Dr Peng Telecom and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Dr Peng and Beijing YanDong 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 Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Beijing YanDong.
Diversification Opportunities for Dr Peng and Beijing YanDong
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600804 and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Dr Peng i.e., Dr Peng and Beijing YanDong go up and down completely randomly.
Pair Corralation between Dr Peng and Beijing YanDong
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.24 times more return on investment than Beijing YanDong. However, Dr Peng is 1.24 times more volatile than Beijing YanDong MicroElectronic. It trades about 0.04 of its potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about -0.07 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Dr Peng Telecom |
| Beijing YanDong Micr |
Dr Peng and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Beijing YanDong
The main advantage of trading using opposite Dr Peng and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Beijing YanDong 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 Beijing YanDong will offset losses from the drop in Beijing YanDong'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 |
| Beijing YanDong vs. Tangel Publishing | Beijing YanDong vs. Dr Peng Telecom | Beijing YanDong vs. Tongyu Communication | Beijing YanDong vs. Northern United Publishing |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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