Correlation Between Guilin Seamild and Panda Dairy Corp
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By analyzing existing cross correlation between Guilin Seamild Foods and Panda Dairy Corp, you can compare the effects of market volatilities on Guilin Seamild and Panda Dairy Corp 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 Guilin Seamild with a short position of Panda Dairy Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Panda Dairy Corp.
Diversification Opportunities for Guilin Seamild and Panda Dairy Corp
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guilin and Panda is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with Panda Dairy Corp. 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 Guilin Seamild i.e., Guilin Seamild and Panda Dairy Corp go up and down completely randomly.
Pair Corralation between Guilin Seamild and Panda Dairy Corp
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 2.25 times less return on investment than Panda Dairy Corp. But when comparing it to its historical volatility, Guilin Seamild Foods is 1.38 times less risky than Panda Dairy Corp. It trades about 0.01 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,277 in Panda Dairy Corp on September 2, 2024 and sell it today you would earn a total of 77.00 from holding Panda Dairy Corp or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Panda Dairy Corp
Performance |
| Timeline |
| Guilin Seamild Foods |
| Panda Dairy Corp |
Guilin Seamild and Panda Dairy Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Panda Dairy Corp
The main advantage of trading using opposite Guilin Seamild and Panda Dairy Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Panda Dairy Corp 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 Corp will offset losses from the drop in Panda Dairy Corp's long position.| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Shenzhen Hifuture Electric | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Shenyang Huitian Thermal |
| Panda Dairy Corp vs. Fujian Anjoy Foods | Panda Dairy Corp vs. Beijing Sanyuan Foods | Panda Dairy Corp vs. Inspur Software Co | Panda Dairy Corp vs. Shanghai Ziyan Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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