Correlation Between Gome Telecom and Dr Peng
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By analyzing existing cross correlation between Gome Telecom Equipment and Dr Peng Telecom, you can compare the effects of market volatilities on Gome Telecom and Dr Peng 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 Gome Telecom with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Dr Peng.
Diversification Opportunities for Gome Telecom and Dr Peng
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gome and 600804 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Dr Peng Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Peng Telecom and Gome Telecom 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 Gome Telecom Equipment are associated (or correlated) with Dr Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Peng Telecom has no effect on the direction of Gome Telecom i.e., Gome Telecom and Dr Peng go up and down completely randomly.
Pair Corralation between Gome Telecom and Dr Peng
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Dr Peng. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.64 times less risky than Dr Peng. The stock trades about -1.32 of its potential returns per unit of risk. The Dr Peng Telecom is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Dr Peng Telecom on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Dr Peng Telecom or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Dr Peng Telecom
Performance |
| Timeline |
| Gome Telecom Equipment |
| Dr Peng Telecom |
Gome Telecom and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Dr Peng
The main advantage of trading using opposite Gome Telecom and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Dr Peng 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 Dr Peng will offset losses from the drop in Dr Peng's long position.| Gome Telecom vs. Zotye Automobile Co | Gome Telecom vs. Zhejiang Qianjiang Motorcycle | Gome Telecom vs. Thinkon Semiconductor Jinzhou | Gome Telecom vs. Haima Automobile Group |
| Dr Peng vs. Zhejiang JIULI Hi tech | Dr Peng vs. Hainan Airlines Co | Dr Peng vs. Beijing Seeyon Internet | Dr Peng vs. Fiberhome Telecommunication Technologies |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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