Correlation Between Dr Peng and Anhui Huaheng
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By analyzing existing cross correlation between Dr Peng Telecom and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Dr Peng and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Anhui Huaheng.
Diversification Opportunities for Dr Peng and Anhui Huaheng
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 600804 and Anhui is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Dr Peng i.e., Dr Peng and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Dr Peng and Anhui Huaheng
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.86 times more return on investment than Anhui Huaheng. However, Dr Peng is 1.86 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.0 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.41 per unit of risk. If you would invest 187.00 in Dr Peng Telecom on October 30, 2024 and sell it today you would lose (2.00) from holding Dr Peng Telecom or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Dr Peng Telecom |
| Anhui Huaheng Biotec |
Dr Peng and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Anhui Huaheng
The main advantage of trading using opposite Dr Peng and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Dr Peng vs. Anhui Gujing Distillery | Dr Peng vs. Guangdong Transtek Medical | Dr Peng vs. Shenzhen Glory Medical | Dr Peng vs. Allgens Medical Technology |
| Anhui Huaheng vs. Shandong Sanyuan Biotechnology | Anhui Huaheng vs. Shanghai Rightongene Biotechnology | Anhui Huaheng vs. Ningbo MedicalSystem Biotechnology | Anhui Huaheng vs. Gan Yuan Foods |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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