Correlation Between Dr Peng and Eastern Communications
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By analyzing existing cross correlation between Dr Peng Telecom and Eastern Communications Co, you can compare the effects of market volatilities on Dr Peng and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and Eastern Communications.
Diversification Opportunities for Dr Peng and Eastern Communications
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 600804 and Eastern is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Dr Peng i.e., Dr Peng and Eastern Communications go up and down completely randomly.
Pair Corralation between Dr Peng and Eastern Communications
Assuming the 90 days trading horizon Dr Peng Telecom is expected to generate 1.49 times more return on investment than Eastern Communications. However, Dr Peng is 1.49 times more volatile than Eastern Communications Co. It trades about 0.12 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.11 per unit of risk. If you would invest 123.00 in Dr Peng Telecom on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Dr Peng Telecom or generate 65.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. Eastern Communications Co
Performance |
| Timeline |
| Dr Peng Telecom |
| Eastern Communications |
Dr Peng and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and Eastern Communications
The main advantage of trading using opposite Dr Peng and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Dr Peng vs. Shandong Sinoglory Health | Dr Peng vs. Haima Automobile Group | Dr Peng vs. Guangzhou Automobile Group | Dr Peng vs. Yunnan Jianzhijia Health Chain |
| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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