Correlation Between Corning Incorporated and Nanjing Panda
Can any of the company-specific risk be diversified away by investing in both Corning Incorporated and Nanjing Panda 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 Corning Incorporated and Nanjing Panda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corning Incorporated and Nanjing Panda Electronics, you can compare the effects of market volatilities on Corning Incorporated and Nanjing Panda 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 Corning Incorporated with a short position of Nanjing Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corning Incorporated and Nanjing Panda.
Diversification Opportunities for Corning Incorporated and Nanjing Panda
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corning and Nanjing is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Corning Incorporated and Nanjing Panda Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Panda Electronics and Corning Incorporated 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 Corning Incorporated are associated (or correlated) with Nanjing Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Panda Electronics has no effect on the direction of Corning Incorporated i.e., Corning Incorporated and Nanjing Panda go up and down completely randomly.
Pair Corralation between Corning Incorporated and Nanjing Panda
Assuming the 90 days horizon Corning Incorporated is expected to generate 2.14 times less return on investment than Nanjing Panda. But when comparing it to its historical volatility, Corning Incorporated is 4.33 times less risky than Nanjing Panda. It trades about 0.08 of its potential returns per unit of risk. Nanjing Panda Electronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Nanjing Panda Electronics on October 19, 2024 and sell it today you would earn a total of 6.00 from holding Nanjing Panda Electronics or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Corning Incorporated vs. Nanjing Panda Electronics
Performance |
| Timeline |
| Corning Incorporated |
| Nanjing Panda Electronics |
Corning Incorporated and Nanjing Panda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corning Incorporated and Nanjing Panda
The main advantage of trading using opposite Corning Incorporated and Nanjing Panda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corning Incorporated position performs unexpectedly, Nanjing Panda 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 Nanjing Panda will offset losses from the drop in Nanjing Panda's long position.| Corning Incorporated vs. Hon Hai Precision | Corning Incorporated vs. Samsung SDI Co | Corning Incorporated vs. Murata Manufacturing Co | Corning Incorporated vs. Mitsubishi Electric |
| Nanjing Panda vs. Hon Hai Precision | Nanjing Panda vs. Samsung SDI Co | Nanjing Panda vs. Murata Manufacturing Co | Nanjing Panda vs. Corning Incorporated |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |