Correlation Between Panda Dairy Corp and New Hope
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By analyzing existing cross correlation between Panda Dairy Corp and New Hope Dairy, you can compare the effects of market volatilities on Panda Dairy Corp and New Hope 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 Corp with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy Corp and New Hope.
Diversification Opportunities for Panda Dairy Corp and New Hope
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panda and New is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy and Panda Dairy Corp 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 New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of Panda Dairy Corp i.e., Panda Dairy Corp and New Hope go up and down completely randomly.
Pair Corralation between Panda Dairy Corp and New Hope
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.1 times more return on investment than New Hope. However, Panda Dairy Corp is 1.1 times more volatile than New Hope Dairy. It trades about 0.34 of its potential returns per unit of risk. New Hope Dairy is currently generating about -0.07 per unit of risk. If you would invest 2,300 in Panda Dairy Corp on November 28, 2024 and sell it today you would earn a total of 400.00 from holding Panda Dairy Corp or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. New Hope Dairy
Performance |
| Timeline |
| Panda Dairy Corp |
| New Hope Dairy |
Panda Dairy Corp and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy Corp and New Hope
The main advantage of trading using opposite Panda Dairy Corp and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy Corp position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.| Panda Dairy Corp vs. Unisplendour Corp | Panda Dairy Corp vs. Shanghai Shibei Hi Tech | Panda Dairy Corp vs. Bank of Suzhou | Panda Dairy Corp vs. Vats Liquor Chain |
| New Hope vs. Chongqing Shunbo Aluminum | New Hope vs. Jiaozuo Wanfang Aluminum | New Hope vs. Shenzhen Urban Transport | New Hope vs. Western Metal Materials |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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