Correlation Between Panda Dairy and Suzhou Weizhixiang
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By analyzing existing cross correlation between Panda Dairy Corp and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Panda Dairy and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Suzhou Weizhixiang.
Diversification Opportunities for Panda Dairy and Suzhou Weizhixiang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Panda and Suzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Panda Dairy i.e., Panda Dairy and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Panda Dairy and Suzhou Weizhixiang
Assuming the 90 days trading horizon Panda Dairy Corp is expected to generate 1.27 times more return on investment than Suzhou Weizhixiang. However, Panda Dairy is 1.27 times more volatile than Suzhou Weizhixiang Food. It trades about 0.01 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about -0.04 per unit of risk. If you would invest 2,347 in Panda Dairy Corp on August 30, 2024 and sell it today you would lose (111.00) from holding Panda Dairy Corp or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Panda Dairy Corp |
| Suzhou Weizhixiang Food |
Panda Dairy and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Suzhou Weizhixiang
The main advantage of trading using opposite Panda Dairy and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Panda Dairy vs. PetroChina Co Ltd | Panda Dairy vs. China Mobile Limited | Panda Dairy vs. Ping An Insurance | Panda Dairy vs. China Petroleum Chemical |
| Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China Mobile Limited | Suzhou Weizhixiang vs. Ping An Insurance | Suzhou Weizhixiang vs. China Petroleum Chemical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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