Correlation Between Ming Yang and Panda Dairy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ming Yang and Panda Dairy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ming Yang and Panda Dairy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Yang Smart and Panda Dairy Corp, you can compare the effects of market volatilities on Ming Yang and Panda Dairy 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 Ming Yang with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Panda Dairy.

Diversification Opportunities for Ming Yang and Panda Dairy

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ming and Panda is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart 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 Ming Yang 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 Ming Yang Smart are associated (or correlated) with Panda Dairy. 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 Ming Yang i.e., Ming Yang and Panda Dairy go up and down completely randomly.

Pair Corralation between Ming Yang and Panda Dairy

Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.51 times more return on investment than Panda Dairy. However, Ming Yang Smart is 1.96 times less risky than Panda Dairy. It trades about -0.63 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about -0.41 per unit of risk. If you would invest  1,442  in Ming Yang Smart on October 14, 2024 and sell it today you would lose (385.00) from holding Ming Yang Smart or give up 26.7% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ming Yang Smart  vs.  Panda Dairy Corp

 Performance 
       Timeline  
Ming Yang Smart 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Ming Yang Smart are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ming Yang is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Panda Dairy Corp 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Panda Dairy Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Panda Dairy sustained solid returns over the last few months and may actually be approaching a breakup point.

Ming Yang and Panda Dairy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ming Yang and Panda Dairy

The main advantage of trading using opposite Ming Yang and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Panda Dairy 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 will offset losses from the drop in Panda Dairy's long position.
Ming Yang vs. State Grid InformationCommunication
Ming Yang vs. Shenzhen Glory Medical
Ming Yang vs. Guangdong Transtek Medical
Ming Yang vs. Xiangyu Medical Co
The idea behind Ming Yang Smart and Panda Dairy Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Panda Dairy vs. Pengxin International Mining
Panda Dairy vs. Shanghai Yaoji Playing
Panda Dairy vs. Shenzhen Silver Basis
Panda Dairy vs. Sportsoul Co Ltd
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY