Correlation Between Nanjing Panda and STORE ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and STORE ELECTRONIC 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 STORE ELECTRONIC 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 STORE ELECTRONIC, you can compare the effects of market volatilities on Nanjing Panda and STORE ELECTRONIC 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 STORE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and STORE ELECTRONIC.
Diversification Opportunities for Nanjing Panda and STORE ELECTRONIC
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanjing and STORE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and STORE ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE ELECTRONIC 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 STORE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE ELECTRONIC has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and STORE ELECTRONIC go up and down completely randomly.
Pair Corralation between Nanjing Panda and STORE ELECTRONIC
If you would invest 14,020 in STORE ELECTRONIC on October 30, 2024 and sell it today you would earn a total of 2,470 from holding STORE ELECTRONIC or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.3% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. STORE ELECTRONIC
Performance |
| Timeline |
| Nanjing Panda Electronics |
| STORE ELECTRONIC |
Nanjing Panda and STORE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and STORE ELECTRONIC
The main advantage of trading using opposite Nanjing Panda and STORE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, STORE ELECTRONIC 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 STORE ELECTRONIC will offset losses from the drop in STORE ELECTRONIC's long position.| Nanjing Panda vs. Soken Chemical Engineering | Nanjing Panda vs. GRENKELEASING Dusseldorf | Nanjing Panda vs. SILICON LABORATOR | Nanjing Panda vs. Lendlease Group |
| STORE ELECTRONIC vs. Apple Inc | STORE ELECTRONIC vs. Apple Inc | STORE ELECTRONIC vs. Apple Inc | STORE ELECTRONIC vs. Apple Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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