Correlation Between China Minmetals and Panda Dairy
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By analyzing existing cross correlation between China Minmetals Rare and Panda Dairy Corp, you can compare the effects of market volatilities on China Minmetals 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 Minmetals with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Panda Dairy.
Diversification Opportunities for China Minmetals and Panda Dairy
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Panda is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare 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 Minmetals 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 Minmetals Rare 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 Minmetals i.e., China Minmetals and Panda Dairy go up and down completely randomly.
Pair Corralation between China Minmetals and Panda Dairy
Assuming the 90 days trading horizon China Minmetals is expected to generate 2.15 times less return on investment than Panda Dairy. But when comparing it to its historical volatility, China Minmetals Rare is 1.63 times less risky than Panda Dairy. It trades about 0.07 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,679 in Panda Dairy Corp on October 18, 2024 and sell it today you would earn a total of 807.00 from holding Panda Dairy Corp or generate 48.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Panda Dairy Corp
Performance |
| Timeline |
| China Minmetals Rare |
| Panda Dairy Corp |
China Minmetals and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Panda Dairy
The main advantage of trading using opposite China Minmetals and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals 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 Minmetals vs. Shandong Homey Aquatic | China Minmetals vs. Zoy Home Furnishing | China Minmetals vs. Fiberhome Telecommunication Technologies | China Minmetals vs. Anhui Jianghuai Automobile |
| Panda Dairy vs. Qingdao Choho Industrial | Panda Dairy vs. Pengxin International Mining | Panda Dairy vs. China Minmetals Rare | Panda Dairy vs. Fujian Newland Computer |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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