Correlation Between Ping An and Panda Dairy Corp
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By analyzing existing cross correlation between Ping An Insurance and Panda Dairy Corp, you can compare the effects of market volatilities on Ping An and Panda Dairy Corp 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 Ping An with a short position of Panda Dairy Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Panda Dairy Corp.
Diversification Opportunities for Ping An and Panda Dairy Corp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Panda is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Panda Dairy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Dairy Corp and Ping An 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 Ping An Insurance are associated (or correlated) with Panda Dairy Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Dairy Corp has no effect on the direction of Ping An i.e., Ping An and Panda Dairy Corp go up and down completely randomly.
Pair Corralation between Ping An and Panda Dairy Corp
Assuming the 90 days trading horizon Ping An is expected to generate 1.26 times less return on investment than Panda Dairy Corp. But when comparing it to its historical volatility, Ping An Insurance is 1.46 times less risky than Panda Dairy Corp. It trades about 0.09 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,857 in Panda Dairy Corp on September 1, 2024 and sell it today you would earn a total of 497.00 from holding Panda Dairy Corp or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Panda Dairy Corp
Performance |
| Timeline |
| Ping An Insurance |
| Panda Dairy Corp |
Ping An and Panda Dairy Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Panda Dairy Corp
The main advantage of trading using opposite Ping An and Panda Dairy Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Panda Dairy Corp 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 Panda Dairy Corp will offset losses from the drop in Panda Dairy Corp's long position.| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
| Panda Dairy Corp vs. Nanjing Putian Telecommunications | Panda Dairy Corp vs. Shenzhen Hifuture Electric | Panda Dairy Corp vs. Tianjin Realty Development | Panda Dairy Corp vs. Shenyang Huitian Thermal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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