Correlation Between Nanjing Panda and DIeteren Group
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and DIeteren Group 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 DIeteren Group 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 DIeteren Group SA, you can compare the effects of market volatilities on Nanjing Panda and DIeteren Group 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 DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and DIeteren Group.
Diversification Opportunities for Nanjing Panda and DIeteren Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanjing and DIeteren is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and DIeteren Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIeteren Group SA 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 DIeteren Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIeteren Group SA has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and DIeteren Group go up and down completely randomly.
Pair Corralation between Nanjing Panda and DIeteren Group
If you would invest 16,110 in DIeteren Group SA on October 31, 2024 and sell it today you would earn a total of 40.00 from holding DIeteren Group SA or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. DIeteren Group SA
Performance |
| Timeline |
| Nanjing Panda Electronics |
| DIeteren Group SA |
Nanjing Panda and DIeteren Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and DIeteren Group
The main advantage of trading using opposite Nanjing Panda and DIeteren Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, DIeteren Group 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 DIeteren Group will offset losses from the drop in DIeteren Group's long position.| Nanjing Panda vs. Beta Systems Software | Nanjing Panda vs. Yuexiu Transport Infrastructure | Nanjing Panda vs. Magic Software Enterprises | Nanjing Panda vs. MAGIC SOFTWARE ENTR |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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