Correlation Between Jiajia Food and Panda Dairy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiajia Food Group and Panda Dairy Corp, you can compare the effects of market volatilities on Jiajia Food 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 Jiajia Food with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Panda Dairy.
Diversification Opportunities for Jiajia Food and Panda Dairy
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Panda is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food 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 Jiajia Food 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 Jiajia Food 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 Jiajia Food i.e., Jiajia Food and Panda Dairy go up and down completely randomly.
Pair Corralation between Jiajia Food and Panda Dairy
Assuming the 90 days trading horizon Jiajia Food is expected to generate 1.31 times less return on investment than Panda Dairy. But when comparing it to its historical volatility, Jiajia Food Group is 1.17 times less risky than Panda Dairy. It trades about 0.01 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,347 in Panda Dairy Corp on August 30, 2024 and sell it today you would lose (111.00) from holding Panda Dairy Corp or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Panda Dairy Corp
Performance |
| Timeline |
| Jiajia Food Group |
| Panda Dairy Corp |
Jiajia Food and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Panda Dairy
The main advantage of trading using opposite Jiajia Food and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food 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.| Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China Mobile Limited | Jiajia Food vs. Ping An Insurance | Jiajia Food vs. China Petroleum Chemical |
| Panda Dairy vs. PetroChina Co Ltd | Panda Dairy vs. China Mobile Limited | Panda Dairy vs. Ping An Insurance | Panda Dairy vs. China Petroleum Chemical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |