Correlation Between Juewei Food and Panda Dairy
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By analyzing existing cross correlation between Juewei Food Co and Panda Dairy Corp, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Panda Dairy.
Diversification Opportunities for Juewei Food and Panda Dairy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Juewei and Panda is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co 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 Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and Panda Dairy go up and down completely randomly.
Pair Corralation between Juewei Food and Panda Dairy
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Panda Dairy. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.26 times less risky than Panda Dairy. The stock trades about -0.09 of its potential returns per unit of risk. The Panda Dairy Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,180 in Panda Dairy Corp on October 16, 2024 and sell it today you would earn a total of 156.00 from holding Panda Dairy Corp or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Panda Dairy Corp
Performance |
| Timeline |
| Juewei Food |
| Panda Dairy Corp |
Juewei Food and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Panda Dairy
The main advantage of trading using opposite Juewei Food and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.| Juewei Food vs. Jinhui Liquor Co | Juewei Food vs. Guangzhou KDT Machinery | Juewei Food vs. Shantui Construction Machinery | Juewei Food vs. Shenzhen Zhongzhuang Construction |
| Panda Dairy vs. Youyou Foods Co | Panda Dairy vs. Suzhou Douson Drilling | Panda Dairy vs. Xiwang Foodstuffs Co | Panda Dairy vs. Fujian Nanwang Environment |
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 Stocks Directory module to find actively traded stocks across global markets.
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