Correlation Between Panda Dairy Corp and PetroChina
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By analyzing existing cross correlation between Panda Dairy Corp and PetroChina Co Ltd, you can compare the effects of market volatilities on Panda Dairy Corp and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy Corp and PetroChina.
Diversification Opportunities for Panda Dairy Corp and PetroChina
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panda and PetroChina is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Panda Dairy Corp i.e., Panda Dairy Corp and PetroChina go up and down completely randomly.
Pair Corralation between Panda Dairy Corp and PetroChina
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 2.76 times more return on investment than PetroChina. However, Panda Dairy Corp is 2.76 times more volatile than PetroChina Co Ltd. It trades about 0.22 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.03 per unit of risk. If you would invest 2,080 in Panda Dairy Corp on September 1, 2024 and sell it today you would earn a total of 274.00 from holding Panda Dairy Corp or generate 13.17% 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. PetroChina Co Ltd
Performance |
| Timeline |
| Panda Dairy Corp |
| PetroChina |
Panda Dairy Corp and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy Corp and PetroChina
The main advantage of trading using opposite Panda Dairy Corp and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy Corp position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Panda Dairy Corp vs. Nanjing Putian Telecommunications | Panda Dairy Corp vs. Shenzhen Hifuture Electric | Panda Dairy Corp vs. Tianjin Realty Development | Panda Dairy Corp vs. Shenyang Huitian Thermal |
| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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