Correlation Between China Vanke and Panda Dairy
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By analyzing existing cross correlation between China Vanke Co and Panda Dairy Corp, you can compare the effects of market volatilities on China Vanke and Panda Dairy 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 China Vanke with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Panda Dairy.
Diversification Opportunities for China Vanke and Panda Dairy
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Panda is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Panda Dairy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Dairy Corp and China Vanke 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 China Vanke Co are associated (or correlated) with Panda Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Dairy Corp has no effect on the direction of China Vanke i.e., China Vanke and Panda Dairy go up and down completely randomly.
Pair Corralation between China Vanke and Panda Dairy
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Panda Dairy. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.32 times less risky than Panda Dairy. The stock trades about -0.05 of its potential returns per unit of risk. The Panda Dairy Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,575 in Panda Dairy Corp on September 5, 2024 and sell it today you would lose (196.00) from holding Panda Dairy Corp or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Panda Dairy Corp
Performance |
| Timeline |
| China Vanke |
| Panda Dairy Corp |
China Vanke and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Panda Dairy
The main advantage of trading using opposite China Vanke and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Panda Dairy 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 Panda Dairy will offset losses from the drop in Panda Dairy's long position.| China Vanke vs. Nanjing Putian Telecommunications | China Vanke vs. Tianjin Realty Development | China Vanke vs. Shenyang Huitian Thermal | China Vanke vs. Shenzhen Changfang Light |
| Panda Dairy vs. Poly Real Estate | Panda Dairy vs. China Vanke Co | Panda Dairy vs. China Merchants Shekou | Panda Dairy vs. Huafa Industrial Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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