Correlation Between Anhui Transport and Dr Peng
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By analyzing existing cross correlation between Anhui Transport Consulting and Dr Peng Telecom, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Dr Peng.
Diversification Opportunities for Anhui Transport and Dr Peng
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and 600804 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting 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 Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Dr Peng go up and down completely randomly.
Pair Corralation between Anhui Transport and Dr Peng
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.76 times more return on investment than Dr Peng. However, Anhui Transport Consulting is 1.31 times less risky than Dr Peng. It trades about -0.01 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about -0.05 per unit of risk. If you would invest 1,297 in Anhui Transport Consulting on August 31, 2024 and sell it today you would lose (325.00) from holding Anhui Transport Consulting or give up 25.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Dr Peng Telecom
Performance |
| Timeline |
| Anhui Transport Cons |
| Dr Peng Telecom |
Anhui Transport and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Dr Peng
The main advantage of trading using opposite Anhui Transport and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology Co |
| Dr Peng vs. Tibet Huayu Mining | Dr Peng vs. Anhui Transport Consulting | Dr Peng vs. Zhongshan Broad Ocean Motor | Dr Peng vs. Jiangsu Broadcasting Cable |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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