Correlation Between Panda Dairy and Xiangpiaopiao Food
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By analyzing existing cross correlation between Panda Dairy Corp and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Panda Dairy and Xiangpiaopiao Food 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 Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Xiangpiaopiao Food.
Diversification Opportunities for Panda Dairy and Xiangpiaopiao Food
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Xiangpiaopiao is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food 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 Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Panda Dairy i.e., Panda Dairy and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Panda Dairy and Xiangpiaopiao Food
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.07 times more return on investment than Xiangpiaopiao Food. However, Panda Dairy is 1.07 times more volatile than Xiangpiaopiao Food Co. It trades about 0.04 of its potential returns per unit of risk. Xiangpiaopiao Food Co is currently generating about 0.02 per unit of risk. If you would invest 1,962 in Panda Dairy Corp on October 18, 2024 and sell it today you would earn a total of 524.00 from holding Panda Dairy Corp or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Panda Dairy Corp vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Panda Dairy Corp |
| Xiangpiaopiao Food |
Panda Dairy and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Xiangpiaopiao Food
The main advantage of trading using opposite Panda Dairy and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food's long position.| Panda Dairy vs. Qingdao Choho Industrial | Panda Dairy vs. Pengxin International Mining | Panda Dairy vs. China Minmetals Rare | Panda Dairy vs. Fujian Newland Computer |
| Xiangpiaopiao Food vs. Gan Yuan Foods | Xiangpiaopiao Food vs. Muyuan Foodstuff Co | Xiangpiaopiao Food vs. Chengdu Spaceon Electronics | Xiangpiaopiao Food vs. CSSC Offshore Marine |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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