Correlation Between 159005 and Panda Financial
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By analyzing existing cross correlation between 159005 and Panda Financial Holding, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Panda Financial.
Diversification Opportunities for 159005 and Panda Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Panda is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Panda Financial go up and down completely randomly.
Pair Corralation between 159005 and Panda Financial
Assuming the 90 days trading horizon 159005 is expected to generate 104.33 times less return on investment than Panda Financial. But when comparing it to its historical volatility, 159005 is 103.93 times less risky than Panda Financial. It trades about 0.23 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 978.00 in Panda Financial Holding on August 28, 2024 and sell it today you would earn a total of 454.00 from holding Panda Financial Holding or generate 46.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Panda Financial Holding
Performance |
| Timeline |
| 159005 |
| Panda Financial Holding |
159005 and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Panda Financial
The main advantage of trading using opposite 159005 and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Panda Financial Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Panda Financial vs. BeiGene | Panda Financial vs. Kweichow Moutai Co | Panda Financial vs. Beijing Roborock Technology | Panda Financial vs. G bits Network 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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