Correlation Between Panda Dairy and China Petroleum
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By analyzing existing cross correlation between Panda Dairy Corp and China Petroleum Chemical, you can compare the effects of market volatilities on Panda Dairy and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and China Petroleum.
Diversification Opportunities for Panda Dairy and China Petroleum
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panda and China is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Panda Dairy i.e., Panda Dairy and China Petroleum go up and down completely randomly.
Pair Corralation between Panda Dairy and China Petroleum
Assuming the 90 days trading horizon Panda Dairy is expected to generate 1.88 times less return on investment than China Petroleum. In addition to that, Panda Dairy is 1.98 times more volatile than China Petroleum Chemical. It trades about 0.02 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.06 per unit of volatility. If you would invest 439.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would earn a total of 199.00 from holding China Petroleum Chemical or generate 45.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. China Petroleum Chemical
Performance |
| Timeline |
| Panda Dairy Corp |
| China Petroleum Chemical |
Panda Dairy and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and China Petroleum
The main advantage of trading using opposite Panda Dairy and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum'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 |
| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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