Correlation Between Dr Peng and Jadard Technology
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By analyzing existing cross correlation between Dr Peng Telecom and Jadard Technology A, you can compare the effects of market volatilities on Dr Peng and Jadard Technology 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 Jadard Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Jadard Technology.
Diversification Opportunities for Dr Peng and Jadard Technology
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 600804 and Jadard is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Jadard Technology A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadard Technology 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 Jadard Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadard Technology has no effect on the direction of Dr Peng i.e., Dr Peng and Jadard Technology go up and down completely randomly.
Pair Corralation between Dr Peng and Jadard Technology
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.54 times more return on investment than Jadard Technology. However, Dr Peng is 1.54 times more volatile than Jadard Technology A. It trades about 0.13 of its potential returns per unit of risk. Jadard Technology A is currently generating about 0.01 per unit of risk. If you would invest 202.00 in Dr Peng Telecom on September 13, 2024 and sell it today you would earn a total of 21.00 from holding Dr Peng Telecom or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dr Peng Telecom vs. Jadard Technology A
Performance |
| Timeline |
| Dr Peng Telecom |
| Jadard Technology |
Dr Peng and Jadard Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Jadard Technology
The main advantage of trading using opposite Dr Peng and Jadard Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Jadard Technology 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 Jadard Technology will offset losses from the drop in Jadard Technology's long position.| Dr Peng vs. Industrial and Commercial | Dr Peng vs. China Construction Bank | Dr Peng vs. Agricultural Bank of | Dr Peng vs. Bank of China |
| Jadard Technology vs. Dr Peng Telecom | Jadard Technology vs. Zhengzhou Coal Mining | Jadard Technology vs. Shenzhen Kexin Communication | Jadard Technology vs. Guangdong Silvere Sci |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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