Correlation Between Sichuan Teway and Panda Dairy
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By analyzing existing cross correlation between Sichuan Teway Food and Panda Dairy Corp, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Panda Dairy.
Diversification Opportunities for Sichuan Teway and Panda Dairy
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sichuan and Panda is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food 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 Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Panda Dairy go up and down completely randomly.
Pair Corralation between Sichuan Teway and Panda Dairy
Assuming the 90 days trading horizon Sichuan Teway Food is expected to generate 0.57 times more return on investment than Panda Dairy. However, Sichuan Teway Food is 1.76 times less risky than Panda Dairy. It trades about -0.09 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about -0.11 per unit of risk. If you would invest 1,388 in Sichuan Teway Food on October 22, 2024 and sell it today you would lose (54.00) from holding Sichuan Teway Food or give up 3.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Panda Dairy Corp
Performance |
| Timeline |
| Sichuan Teway Food |
| Panda Dairy Corp |
Sichuan Teway and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Panda Dairy
The main advantage of trading using opposite Sichuan Teway and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. Vanfund Urban Investment | Sichuan Teway vs. Shandong Rike Chemical | Sichuan Teway vs. Henan Shuanghui Investment | Sichuan Teway vs. Guangzhou Jointas Chemical |
| Panda Dairy vs. Kailong High Technology | Panda Dairy vs. Bosera CMSK Industrial | Panda Dairy vs. Cabio Biotech Wuhan | Panda Dairy vs. Digiwin Software Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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