Correlation Between Shenyang Huitian and Panda Dairy
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Panda Dairy Corp, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Panda Dairy.
Diversification Opportunities for Shenyang Huitian and Panda Dairy
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Panda is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal 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 Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Panda Dairy go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Panda Dairy
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.11 times more return on investment than Panda Dairy. However, Shenyang Huitian is 1.11 times more volatile than Panda Dairy Corp. It trades about 0.09 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.03 per unit of risk. If you would invest 248.00 in Shenyang Huitian Thermal on September 3, 2024 and sell it today you would earn a total of 122.00 from holding Shenyang Huitian Thermal or generate 49.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.38% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Panda Dairy Corp
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Panda Dairy Corp |
Shenyang Huitian and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Panda Dairy
The main advantage of trading using opposite Shenyang Huitian and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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