Correlation Between Jiugui Liquor and Panda Financial
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By analyzing existing cross correlation between Jiugui Liquor Co and Panda Financial Holding, you can compare the effects of market volatilities on Jiugui Liquor and Panda Financial 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 Jiugui Liquor with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Panda Financial.
Diversification Opportunities for Jiugui Liquor and Panda Financial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Panda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Panda Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Financial Holding and Jiugui Liquor 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 Jiugui Liquor Co are associated (or correlated) with Panda Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Financial Holding has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Panda Financial go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Panda Financial
Assuming the 90 days trading horizon Jiugui Liquor is expected to generate 1.89 times less return on investment than Panda Financial. In addition to that, Jiugui Liquor is 1.12 times more volatile than Panda Financial Holding. It trades about 0.04 of its total potential returns per unit of risk. Panda Financial Holding is currently generating about 0.08 per unit of volatility. If you would invest 1,131 in Panda Financial Holding on September 3, 2024 and sell it today you would earn a total of 386.00 from holding Panda Financial Holding or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Panda Financial Holding
Performance |
| Timeline |
| Jiugui Liquor |
| Panda Financial Holding |
Jiugui Liquor and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Panda Financial
The main advantage of trading using opposite Jiugui Liquor and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Panda Financial 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 Financial will offset losses from the drop in Panda Financial's long position.| Jiugui Liquor vs. Chongqing Brewery Co | Jiugui Liquor vs. JiShi Media Co | Jiugui Liquor vs. China Publishing Media | Jiugui Liquor vs. Zhejiang Daily Media |
| Panda Financial vs. Chongqing Road Bridge | Panda Financial vs. Wuhan Xianglong Power | Panda Financial vs. Empyrean Technology Co | Panda Financial vs. Yuanjie Semiconductor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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