Correlation Between Qijing Machinery and Panda Dairy
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By analyzing existing cross correlation between Qijing Machinery and Panda Dairy Corp, you can compare the effects of market volatilities on Qijing Machinery 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 Qijing Machinery with a short position of Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Panda Dairy.
Diversification Opportunities for Qijing Machinery and Panda Dairy
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qijing and Panda is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery 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 Qijing Machinery 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 Qijing Machinery 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 Qijing Machinery i.e., Qijing Machinery and Panda Dairy go up and down completely randomly.
Pair Corralation between Qijing Machinery and Panda Dairy
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.0 times more return on investment than Panda Dairy. However, Qijing Machinery is 1.0 times less risky than Panda Dairy. It trades about 0.07 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about -0.22 per unit of risk. If you would invest 1,334 in Qijing Machinery on November 2, 2024 and sell it today you would earn a total of 46.00 from holding Qijing Machinery or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Panda Dairy Corp
Performance |
| Timeline |
| Qijing Machinery |
| Panda Dairy Corp |
Qijing Machinery and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Panda Dairy
The main advantage of trading using opposite Qijing Machinery and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery 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.| Qijing Machinery vs. Shanghai Ziyan Foods | Qijing Machinery vs. Guangzhou Jointas Chemical | Qijing Machinery vs. Gan Yuan Foods | Qijing Machinery vs. Great Sun Foods Co |
| Panda Dairy vs. Qingdao Haier Biomedical | Panda Dairy vs. Ligao Foods CoLtd | Panda Dairy vs. Zhonghong Pulin Medical | Panda Dairy vs. Touchstone International Medical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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