Correlation Between Panda Dairy Corp and Beijing Sanyuan
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By analyzing existing cross correlation between Panda Dairy Corp and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Panda Dairy Corp and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy Corp and Beijing Sanyuan.
Diversification Opportunities for Panda Dairy Corp and Beijing Sanyuan
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Panda and Beijing is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Panda Dairy Corp i.e., Panda Dairy Corp and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Panda Dairy Corp and Beijing Sanyuan
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.95 times more return on investment than Beijing Sanyuan. However, Panda Dairy Corp is 1.95 times more volatile than Beijing Sanyuan Foods. It trades about 0.02 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.0 per unit of risk. If you would invest 2,100 in Panda Dairy Corp on August 31, 2024 and sell it today you would earn a total of 176.00 from holding Panda Dairy Corp or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Panda Dairy Corp vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Panda Dairy Corp |
| Beijing Sanyuan Foods |
Panda Dairy Corp and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy Corp and Beijing Sanyuan
The main advantage of trading using opposite Panda Dairy Corp and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy Corp position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Panda Dairy Corp vs. Lutian Machinery Co | Panda Dairy Corp vs. PetroChina Co Ltd | Panda Dairy Corp vs. Bank of China | Panda Dairy Corp vs. Gansu Jiu Steel |
| Beijing Sanyuan vs. Lutian Machinery Co | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. Bank of China | Beijing Sanyuan vs. Gansu Jiu Steel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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