Correlation Between Panda Dairy and Guangzhou Haige
Specify exactly 2 symbols:
By analyzing existing cross correlation between Panda Dairy Corp and Guangzhou Haige Communications, you can compare the effects of market volatilities on Panda Dairy and Guangzhou Haige 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 Panda Dairy with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Guangzhou Haige.
Diversification Opportunities for Panda Dairy and Guangzhou Haige
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Panda and Guangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Panda Dairy 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 Panda Dairy Corp are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Panda Dairy i.e., Panda Dairy and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Panda Dairy and Guangzhou Haige
Assuming the 90 days trading horizon Panda Dairy is expected to generate 1.1 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, Panda Dairy Corp is 1.26 times less risky than Guangzhou Haige. It trades about 0.18 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,157 in Guangzhou Haige Communications on September 4, 2024 and sell it today you would earn a total of 130.00 from holding Guangzhou Haige Communications or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Panda Dairy Corp |
| Guangzhou Haige Comm |
Panda Dairy and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Guangzhou Haige
The main advantage of trading using opposite Panda Dairy and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Panda Dairy vs. Poly Real Estate | Panda Dairy vs. China Vanke Co | Panda Dairy vs. China Merchants Shekou | Panda Dairy vs. Huafa Industrial Co |
| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China | Guangzhou Haige vs. Agricultural Bank of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |