Correlation Between Nanjing Panda and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on Nanjing Panda and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and Austevoll Seafood.
Diversification Opportunities for Nanjing Panda and Austevoll Seafood
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanjing and Austevoll is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Nanjing Panda and Austevoll Seafood
If you would invest 33.00 in Nanjing Panda Electronics on October 16, 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 | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Nanjing Panda Electronics |
| Austevoll Seafood ASA |
Nanjing Panda and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and Austevoll Seafood
The main advantage of trading using opposite Nanjing Panda and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Nanjing Panda vs. Virtus Investment Partners | Nanjing Panda vs. Zijin Mining Group | Nanjing Panda vs. FIRST SAVINGS FINL | Nanjing Panda vs. CHRYSALIS INVESTMENTS LTD |
| Austevoll Seafood vs. TRADELINK ELECTRON | Austevoll Seafood vs. Automatic Data Processing | Austevoll Seafood vs. MICRONIC MYDATA | Austevoll Seafood vs. CANON MARKETING JP |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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