Correlation Between Jiamei Food and Panda Financial
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By analyzing existing cross correlation between Jiamei Food Packaging and Panda Financial Holding, you can compare the effects of market volatilities on Jiamei Food 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 Jiamei Food with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and Panda Financial.
Diversification Opportunities for Jiamei Food and Panda Financial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiamei and Panda is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging 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 Jiamei 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 Jiamei Food Packaging 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 Jiamei Food i.e., Jiamei Food and Panda Financial go up and down completely randomly.
Pair Corralation between Jiamei Food and Panda Financial
Assuming the 90 days trading horizon Jiamei Food is expected to generate 1.96 times less return on investment than Panda Financial. But when comparing it to its historical volatility, Jiamei Food Packaging is 1.29 times less risky than Panda Financial. It trades about 0.04 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 857.00 in Panda Financial Holding on November 3, 2024 and sell it today you would earn a total of 266.00 from holding Panda Financial Holding or generate 31.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. Panda Financial Holding
Performance |
| Timeline |
| Jiamei Food Packaging |
| Panda Financial Holding |
Jiamei Food and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and Panda Financial
The main advantage of trading using opposite Jiamei Food and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food 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.| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Shandong Gold Mining |
| Panda Financial vs. Industrial and Commercial | Panda Financial vs. Agricultural Bank of | Panda Financial vs. China Construction Bank | Panda Financial vs. Bank of China |
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..
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