Correlation Between Panda Dairy and Jiajia Food
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By analyzing existing cross correlation between Panda Dairy Corp and Jiajia Food Group, you can compare the effects of market volatilities on Panda Dairy and Jiajia Food 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 Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Jiajia Food.
Diversification Opportunities for Panda Dairy and Jiajia Food
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Jiajia is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group 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 Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Panda Dairy i.e., Panda Dairy and Jiajia Food go up and down completely randomly.
Pair Corralation between Panda Dairy and Jiajia Food
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.17 times more return on investment than Jiajia Food. However, Panda Dairy is 1.17 times more volatile than Jiajia Food Group. It trades about 0.01 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.01 per unit of risk. If you would invest 2,347 in Panda Dairy Corp on August 30, 2024 and sell it today you would lose (111.00) from holding Panda Dairy Corp or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Jiajia Food Group
Performance |
| Timeline |
| Panda Dairy Corp |
| Jiajia Food Group |
Panda Dairy and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Jiajia Food
The main advantage of trading using opposite Panda Dairy and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| Panda Dairy vs. PetroChina Co Ltd | Panda Dairy vs. China Mobile Limited | Panda Dairy vs. Ping An Insurance | Panda Dairy vs. China Petroleum Chemical |
| Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China Mobile Limited | Jiajia Food vs. Ping An Insurance | Jiajia Food vs. China Petroleum Chemical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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