Correlation Between Nanjing Panda and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and PICKN PAY 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 PICKN PAY 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 PICKN PAY STORES, you can compare the effects of market volatilities on Nanjing Panda and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and PICKN PAY.
Diversification Opportunities for Nanjing Panda and PICKN PAY
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanjing and PICKN is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and PICKN PAY go up and down completely randomly.
Pair Corralation between Nanjing Panda and PICKN PAY
If you would invest 157.00 in PICKN PAY STORES on October 12, 2024 and sell it today you would earn a total of 0.00 from holding PICKN PAY STORES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. PICKN PAY STORES
Performance |
| Timeline |
| Nanjing Panda Electronics |
| PICKN PAY STORES |
Nanjing Panda and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and PICKN PAY
The main advantage of trading using opposite Nanjing Panda and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| Nanjing Panda vs. Astral Foods Limited | Nanjing Panda vs. Performance Food Group | Nanjing Panda vs. Nomad Foods | Nanjing Panda vs. United Natural Foods |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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