Correlation Between Nanjing Panda and Archer Daniels
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and Archer Daniels 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 Nanjing Panda and Archer Daniels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanjing Panda Electronics and Archer Daniels Midland, you can compare the effects of market volatilities on Nanjing Panda and Archer Daniels 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 Nanjing Panda with a short position of Archer Daniels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and Archer Daniels.
Diversification Opportunities for Nanjing Panda and Archer Daniels
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and Archer is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and Archer Daniels Midland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Daniels Midland and Nanjing Panda 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 Nanjing Panda Electronics are associated (or correlated) with Archer Daniels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Daniels Midland has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and Archer Daniels go up and down completely randomly.
Pair Corralation between Nanjing Panda and Archer Daniels
If you would invest 33.00 in Nanjing Panda Electronics on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Nanjing Panda Electronics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. Archer Daniels Midland
Performance |
| Timeline |
| Nanjing Panda Electronics |
| Archer Daniels Midland |
Nanjing Panda and Archer Daniels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and Archer Daniels
The main advantage of trading using opposite Nanjing Panda and Archer Daniels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, Archer Daniels 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 Archer Daniels will offset losses from the drop in Archer Daniels' long position.| Nanjing Panda vs. Hon Hai Precision | Nanjing Panda vs. Sunny Optical Technology | Nanjing Panda vs. Superior Plus Corp | Nanjing Panda vs. NMI Holdings |
| Archer Daniels vs. AOI Electronics Co | Archer Daniels vs. Nucletron Electronic Aktiengesellschaft | Archer Daniels vs. NTG Nordic Transport | Archer Daniels vs. Nanjing Panda Electronics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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