Correlation Between HeNan Splendor and Panda Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between HeNan Splendor Science and Panda Financial Holding, you can compare the effects of market volatilities on HeNan Splendor and Panda Financial 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 HeNan Splendor with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Panda Financial.
Diversification Opportunities for HeNan Splendor and Panda Financial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeNan and Panda is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Panda Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Financial Holding and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Panda Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Financial Holding has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Panda Financial go up and down completely randomly.
Pair Corralation between HeNan Splendor and Panda Financial
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.03 times more return on investment than Panda Financial. However, HeNan Splendor is 1.03 times more volatile than Panda Financial Holding. It trades about 0.02 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.0 per unit of risk. If you would invest 890.00 in HeNan Splendor Science on October 16, 2024 and sell it today you would earn a total of 2.00 from holding HeNan Splendor Science or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Panda Financial Holding
Performance |
| Timeline |
| HeNan Splendor Science |
| Panda Financial Holding |
HeNan Splendor and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Panda Financial
The main advantage of trading using opposite HeNan Splendor and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Panda Financial 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 Panda Financial will offset losses from the drop in Panda Financial's long position.| HeNan Splendor vs. Spring Airlines Co | HeNan Splendor vs. Guangzhou Seagull Kitchen | HeNan Splendor vs. Yindu Kitchen Equipment | HeNan Splendor vs. Hangzhou Gaoxin Rubber |
| Panda Financial vs. Heilongjiang Publishing Media | Panda Financial vs. Runjian Communication Co | Panda Financial vs. China Publishing Media | Panda Financial vs. Sichuan Jinshi Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |