Correlation Between Panda Dairy and Hainan Airlines
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By analyzing existing cross correlation between Panda Dairy Corp and Hainan Airlines Co, you can compare the effects of market volatilities on Panda Dairy and Hainan Airlines 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 Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Dairy and Hainan Airlines.
Diversification Opportunities for Panda Dairy and Hainan Airlines
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and Hainan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Panda Dairy Corp and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines 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 Hainan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of Panda Dairy i.e., Panda Dairy and Hainan Airlines go up and down completely randomly.
Pair Corralation between Panda Dairy and Hainan Airlines
Assuming the 90 days trading horizon Panda Dairy Corp is expected to under-perform the Hainan Airlines. In addition to that, Panda Dairy is 1.11 times more volatile than Hainan Airlines Co. It trades about -0.11 of its total potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.12 per unit of volatility. If you would invest 31.00 in Hainan Airlines Co on October 22, 2024 and sell it today you would earn a total of 2.00 from holding Hainan Airlines Co or generate 6.45% 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. Hainan Airlines Co
Performance |
| Timeline |
| Panda Dairy Corp |
| Hainan Airlines |
Panda Dairy and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Dairy and Hainan Airlines
The main advantage of trading using opposite Panda Dairy and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Dairy position performs unexpectedly, Hainan Airlines 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 Hainan Airlines will offset losses from the drop in Hainan Airlines' 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 |
| Hainan Airlines vs. Chengdu Xinzhu RoadBridge | Hainan Airlines vs. Liuzhou Chemical Industry | Hainan Airlines vs. Hainan Haiqi Transportation | Hainan Airlines vs. Maoming Petro Chemical Shihua |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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