Correlation Between Shandong Huifa and Dr Peng
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By analyzing existing cross correlation between Shandong Huifa Foodstuff and Dr Peng Telecom, you can compare the effects of market volatilities on Shandong Huifa 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 Shandong Huifa with a short position of Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Huifa and Dr Peng.
Diversification Opportunities for Shandong Huifa and Dr Peng
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and 600804 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Huifa Foodstuff 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 Shandong Huifa 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 Shandong Huifa Foodstuff 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 Shandong Huifa i.e., Shandong Huifa and Dr Peng go up and down completely randomly.
Pair Corralation between Shandong Huifa and Dr Peng
Assuming the 90 days trading horizon Shandong Huifa Foodstuff is expected to generate 0.82 times more return on investment than Dr Peng. However, Shandong Huifa Foodstuff is 1.23 times less risky than Dr Peng. It trades about 0.06 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about -0.06 per unit of risk. If you would invest 1,012 in Shandong Huifa Foodstuff on November 28, 2024 and sell it today you would earn a total of 20.00 from holding Shandong Huifa Foodstuff or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Shandong Huifa Foodstuff vs. Dr Peng Telecom
Performance |
| Timeline |
| Shandong Huifa Foodstuff |
| Dr Peng Telecom |
Shandong Huifa and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Huifa and Dr Peng
The main advantage of trading using opposite Shandong Huifa and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Huifa 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.| Shandong Huifa vs. Anhui Huaheng Biotechnology | Shandong Huifa vs. Super Dragon Engineering Plastics | Shandong Huifa vs. Shenzhen Bioeasy Biotechnology | Shandong Huifa vs. Fujian Wanchen Biotechnology |
| Dr Peng vs. Changjiang Publishing Media | Dr Peng vs. Jinhui Mining Co | Dr Peng vs. Xinhua Winshare Publishing | Dr Peng vs. Beijing Kaiwen Education |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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