Correlation Between Panda Dairy and Jinling Hotel
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By analyzing existing cross correlation between Panda Dairy Corp and Jinling Hotel Corp, you can compare the effects of market volatilities on Panda Dairy and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Jinling Hotel.
Diversification Opportunities for Panda Dairy and Jinling Hotel
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Jinling is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Panda Dairy i.e., Panda Dairy and Jinling Hotel go up and down completely randomly.
Pair Corralation between Panda Dairy and Jinling Hotel
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.43 times more return on investment than Jinling Hotel. However, Panda Dairy is 1.43 times more volatile than Jinling Hotel Corp. It trades about 0.02 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.03 per unit of risk. If you would invest 2,180 in Panda Dairy Corp on October 16, 2024 and sell it today you would earn a total of 156.00 from holding Panda Dairy Corp or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Jinling Hotel Corp
Performance |
| Timeline |
| Panda Dairy Corp |
| Jinling Hotel Corp |
Panda Dairy and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Jinling Hotel
The main advantage of trading using opposite Panda Dairy and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Panda Dairy vs. Youyou Foods Co | Panda Dairy vs. Suzhou Douson Drilling | Panda Dairy vs. Xiwang Foodstuffs Co | Panda Dairy vs. Fujian Nanwang Environment |
| Jinling Hotel vs. Dongguan Tarry Electronics | Jinling Hotel vs. Aurora Optoelectronics Co | Jinling Hotel vs. TongFu Microelectronics Co | Jinling Hotel vs. Jiangyin Jianghua Microelectronics |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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