Correlation Between Nanjing Panda and Best Buy
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and Best Buy 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 Best Buy 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 Best Buy Co, you can compare the effects of market volatilities on Nanjing Panda and Best Buy 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 Best Buy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and Best Buy.
Diversification Opportunities for Nanjing Panda and Best Buy
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and Best is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and Best Buy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Best Buy 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 Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and Best Buy go up and down completely randomly.
Pair Corralation between Nanjing Panda and Best Buy
If you would invest 33.00 in Nanjing Panda Electronics on October 30, 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 | 94.74% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. Best Buy Co
Performance |
| Timeline |
| Nanjing Panda Electronics |
| Best Buy |
Nanjing Panda and Best Buy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and Best Buy
The main advantage of trading using opposite Nanjing Panda and Best Buy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, Best Buy 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 Best Buy will offset losses from the drop in Best Buy's long position.| Nanjing Panda vs. Soken Chemical Engineering | Nanjing Panda vs. GRENKELEASING Dusseldorf | Nanjing Panda vs. SILICON LABORATOR | Nanjing Panda vs. Lendlease Group |
| Best Buy vs. Lendlease Group | Best Buy vs. TOMBADOR IRON LTD | Best Buy vs. Khiron Life Sciences | Best Buy vs. GRENKELEASING Dusseldorf |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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