Correlation Between Nanjing Putian and Panda Dairy Corp
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Panda Dairy Corp, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Panda Dairy Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Panda Dairy Corp.
Diversification Opportunities for Nanjing Putian and Panda Dairy Corp
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Panda is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati 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 Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Panda Dairy Corp go up and down completely randomly.
Pair Corralation between Nanjing Putian and Panda Dairy Corp
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.53 times more return on investment than Panda Dairy Corp. However, Nanjing Putian is 1.53 times more volatile than Panda Dairy Corp. It trades about 0.23 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.22 per unit of risk. If you would invest 379.00 in Nanjing Putian Telecommunications on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Nanjing Putian Telecommunications or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Panda Dairy Corp
Performance |
| Timeline |
| Nanjing Putian Telec |
| Panda Dairy Corp |
Nanjing Putian and Panda Dairy Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Panda Dairy Corp
The main advantage of trading using opposite Nanjing Putian and Panda Dairy Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Tieling Newcity Investment | Nanjing Putian vs. Yindu Kitchen Equipment | Nanjing Putian vs. Zhongrun Resources Investment | Nanjing Putian vs. Xiandai Investment Co |
| Panda Dairy Corp vs. Nanjing Putian Telecommunications | Panda Dairy Corp vs. Shenzhen Hifuture Electric | Panda Dairy Corp vs. Tianjin Realty Development | Panda Dairy Corp vs. Shenyang Huitian Thermal |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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