Correlation Between Panda Dairy and Poly Real
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By analyzing existing cross correlation between Panda Dairy Corp and Poly Real Estate, you can compare the effects of market volatilities on Panda Dairy and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Poly Real.
Diversification Opportunities for Panda Dairy and Poly Real
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panda and Poly is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Panda Dairy i.e., Panda Dairy and Poly Real go up and down completely randomly.
Pair Corralation between Panda Dairy and Poly Real
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 3.64 times more return on investment than Poly Real. However, Panda Dairy is 3.64 times more volatile than Poly Real Estate. It trades about 0.21 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.27 per unit of risk. If you would invest 2,350 in Panda Dairy Corp on September 12, 2024 and sell it today you would earn a total of 562.00 from holding Panda Dairy Corp or generate 23.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Panda Dairy Corp vs. Poly Real Estate
Performance |
| Timeline |
| Panda Dairy Corp |
| Poly Real Estate |
Panda Dairy and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Poly Real
The main advantage of trading using opposite Panda Dairy and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Panda Dairy vs. China Petroleum Chemical | Panda Dairy vs. PetroChina Co Ltd | Panda Dairy vs. China State Construction | Panda Dairy vs. China Railway Group |
| Poly Real vs. Guangzhou Ruoyuchen Information | Poly Real vs. BTG Hotels Group | Poly Real vs. Shenzhen SDG Information | Poly Real vs. Tongding Interconnection Information |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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