Correlation Between Tianjin Ruixin and Panda Dairy
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Panda Dairy Corp, you can compare the effects of market volatilities on Tianjin Ruixin 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 Tianjin Ruixin with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Panda Dairy.
Diversification Opportunities for Tianjin Ruixin and Panda Dairy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Panda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology 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 Tianjin Ruixin 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 Tianjin Ruixin Technology 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 Tianjin Ruixin i.e., Tianjin Ruixin and Panda Dairy go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Panda Dairy
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 0.95 times more return on investment than Panda Dairy. However, Tianjin Ruixin Technology is 1.05 times less risky than Panda Dairy. It trades about -0.28 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about -0.41 per unit of risk. If you would invest 1,844 in Tianjin Ruixin Technology on October 14, 2024 and sell it today you would lose (435.00) from holding Tianjin Ruixin Technology or give up 23.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Panda Dairy Corp
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Panda Dairy Corp |
Tianjin Ruixin and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Panda Dairy
The main advantage of trading using opposite Tianjin Ruixin and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin 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.| Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Shandong Gold Mining |
| Panda Dairy vs. Keeson Technology Corp | Panda Dairy vs. Tianjin Ruixin Technology | Panda Dairy vs. Longjian Road Bridge | Panda Dairy vs. Heilongjiang Transport Development |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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