Correlation Between Panda Dairy and Eastroc Beverage
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By analyzing existing cross correlation between Panda Dairy Corp and Eastroc Beverage Group, you can compare the effects of market volatilities on Panda Dairy and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Eastroc Beverage.
Diversification Opportunities for Panda Dairy and Eastroc Beverage
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and Eastroc is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Panda Dairy i.e., Panda Dairy and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Panda Dairy and Eastroc Beverage
Assuming the 90 days trading horizon Panda Dairy Corp is expected to under-perform the Eastroc Beverage. In addition to that, Panda Dairy is 1.24 times more volatile than Eastroc Beverage Group. It trades about -0.11 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.02 per unit of volatility. If you would invest 24,199 in Eastroc Beverage Group on October 22, 2024 and sell it today you would earn a total of 101.00 from holding Eastroc Beverage Group or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Dairy Corp vs. Eastroc Beverage Group
Performance |
| Timeline |
| Panda Dairy Corp |
| Eastroc Beverage |
Panda Dairy and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Eastroc Beverage
The main advantage of trading using opposite Panda Dairy and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Panda Dairy vs. Kailong High Technology | Panda Dairy vs. Bosera CMSK Industrial | Panda Dairy vs. Cabio Biotech Wuhan | Panda Dairy vs. Digiwin Software Co |
| Eastroc Beverage vs. Wuhan Yangtze Communication | Eastroc Beverage vs. Zhejiang Yinlun Machinery | Eastroc Beverage vs. Tongyu Communication | Eastroc Beverage vs. Hubei Yingtong Telecommunication |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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