Correlation Between Panda Dairy and Anji Foodstuff
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By analyzing existing cross correlation between Panda Dairy Corp and Anji Foodstuff Co, you can compare the effects of market volatilities on Panda Dairy and Anji Foodstuff 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 Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Anji Foodstuff.
Diversification Opportunities for Panda Dairy and Anji Foodstuff
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panda and Anji is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff 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 Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of Panda Dairy i.e., Panda Dairy and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Panda Dairy and Anji Foodstuff
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.27 times more return on investment than Anji Foodstuff. However, Panda Dairy is 1.27 times more volatile than Anji Foodstuff Co. It trades about 0.02 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about -0.01 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Anji Foodstuff Co
Performance |
| Timeline |
| Panda Dairy Corp |
| Anji Foodstuff |
Panda Dairy and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Anji Foodstuff
The main advantage of trading using opposite Panda Dairy and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Anji Foodstuff 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 Anji Foodstuff will offset losses from the drop in Anji Foodstuff'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 |
| Anji Foodstuff vs. Cultural Investment Holdings | Anji Foodstuff vs. Vanfund Urban Investment | Anji Foodstuff vs. Luyin Investment Group | Anji Foodstuff vs. Henan Shuanghui Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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