Correlation Between Hefei Metalforming and Panda Dairy
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By analyzing existing cross correlation between Hefei Metalforming Mach and Panda Dairy Corp, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Panda Dairy.
Diversification Opportunities for Hefei Metalforming and Panda Dairy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hefei and Panda is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and Panda Dairy go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Panda Dairy
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.01 times more return on investment than Panda Dairy. However, Hefei Metalforming is 1.01 times more volatile than Panda Dairy Corp. It trades about 0.03 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.02 per unit of risk. If you would invest 637.00 in Hefei Metalforming Mach on October 16, 2024 and sell it today you would earn a total of 82.00 from holding Hefei Metalforming Mach or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Panda Dairy Corp
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Panda Dairy Corp |
Hefei Metalforming and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Panda Dairy
The main advantage of trading using opposite Hefei Metalforming and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Biwin Storage Technology | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Construction Bank |
| Panda Dairy vs. ROPEOK Technology Group | Panda Dairy vs. Kuangda Technology Group | Panda Dairy vs. Hefei Metalforming Mach | Panda Dairy vs. Iat Automobile Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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