Correlation Between Kuangda Technology and Panda Dairy
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By analyzing existing cross correlation between Kuangda Technology Group and Panda Dairy Corp, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Panda Dairy.
Diversification Opportunities for Kuangda Technology and Panda Dairy
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuangda and Panda is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group 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 Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and Panda Dairy go up and down completely randomly.
Pair Corralation between Kuangda Technology and Panda Dairy
Assuming the 90 days trading horizon Kuangda Technology Group is expected to under-perform the Panda Dairy. But the stock apears to be less risky and, when comparing its historical volatility, Kuangda Technology Group is 1.87 times less risky than Panda Dairy. The stock trades about -0.04 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 2,354 in Panda Dairy Corp on October 30, 2024 and sell it today you would lose (54.00) from holding Panda Dairy Corp or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Panda Dairy Corp
Performance |
| Timeline |
| Kuangda Technology |
| Panda Dairy Corp |
Kuangda Technology and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Panda Dairy
The main advantage of trading using opposite Kuangda Technology and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
| Panda Dairy vs. Kweichow Moutai Co | Panda Dairy vs. Contemporary Amperex Technology | Panda Dairy vs. G bits Network Technology | Panda Dairy vs. Beijing Roborock 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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