Correlation Between Xiwang Foodstuffs and Panda Dairy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiwang Foodstuffs Co and Panda Dairy Corp, you can compare the effects of market volatilities on Xiwang Foodstuffs 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 Xiwang Foodstuffs with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Panda Dairy.
Diversification Opportunities for Xiwang Foodstuffs and Panda Dairy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Panda is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs 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 Xiwang Foodstuffs 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 Xiwang Foodstuffs 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 Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Panda Dairy go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Panda Dairy
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Panda Dairy. But the stock apears to be less risky and, when comparing its historical volatility, Xiwang Foodstuffs Co is 1.19 times less risky than Panda Dairy. The stock trades about -0.01 of its potential returns per unit of risk. The Panda Dairy Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,180 in Panda Dairy Corp on October 16, 2024 and sell it today you would earn a total of 156.00 from holding Panda Dairy Corp or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Panda Dairy Corp
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Panda Dairy Corp |
Xiwang Foodstuffs and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Panda Dairy
The main advantage of trading using opposite Xiwang Foodstuffs and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs 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.| Xiwang Foodstuffs vs. Unisplendour Corp | Xiwang Foodstuffs vs. Suzhou Mingzhi Technology | Xiwang Foodstuffs vs. Silkroad Visual Technology | Xiwang Foodstuffs vs. Hubeiyichang Transportation Group |
| Panda Dairy vs. ROPEOK Technology Group | Panda Dairy vs. Kuangda Technology Group | Panda Dairy vs. Hefei Metalforming Mach | Panda Dairy vs. Iat Automobile Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |