Correlation Between Panda Dairy and Beijing Wantai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Panda Dairy Corp and Beijing Wantai Biological, you can compare the effects of market volatilities on Panda Dairy and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Beijing Wantai.
Diversification Opportunities for Panda Dairy and Beijing Wantai
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Beijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Panda Dairy i.e., Panda Dairy and Beijing Wantai go up and down completely randomly.
Pair Corralation between Panda Dairy and Beijing Wantai
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.1 times more return on investment than Beijing Wantai. However, Panda Dairy is 1.1 times more volatile than Beijing Wantai Biological. It trades about 0.01 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.01 per unit of risk. If you would invest 2,785 in Panda Dairy Corp on September 4, 2024 and sell it today you would lose (382.00) from holding Panda Dairy Corp or give up 13.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Beijing Wantai Biological
Performance |
| Timeline |
| Panda Dairy Corp |
| Beijing Wantai Biological |
Panda Dairy and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Beijing Wantai
The main advantage of trading using opposite Panda Dairy and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Beijing Wantai 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 Wantai will offset losses from the drop in Beijing Wantai's long position.| Panda Dairy vs. Poly Real Estate | Panda Dairy vs. China Vanke Co | Panda Dairy vs. China Merchants Shekou | Panda Dairy vs. Huafa Industrial Co |
| Beijing Wantai vs. Hubeiyichang Transportation Group | Beijing Wantai vs. Jiangsu Jinling Sports | Beijing Wantai vs. Sino Platinum Metals Co | Beijing Wantai vs. Qinghaihuading Industrial Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |