Correlation Between Lecron Energy and Panda Financial
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By analyzing existing cross correlation between Lecron Energy Saving and Panda Financial Holding, you can compare the effects of market volatilities on Lecron Energy 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 Lecron Energy with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Panda Financial.
Diversification Opportunities for Lecron Energy and Panda Financial
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and Panda is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving 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 Lecron Energy 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 Lecron Energy Saving 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 Lecron Energy i.e., Lecron Energy and Panda Financial go up and down completely randomly.
Pair Corralation between Lecron Energy and Panda Financial
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Panda Financial. In addition to that, Lecron Energy is 1.43 times more volatile than Panda Financial Holding. It trades about -0.02 of its total potential returns per unit of risk. Panda Financial Holding is currently generating about 0.0 per unit of volatility. If you would invest 1,307 in Panda Financial Holding on October 16, 2024 and sell it today you would lose (166.00) from holding Panda Financial Holding or give up 12.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Panda Financial Holding
Performance |
| Timeline |
| Lecron Energy Saving |
| Panda Financial Holding |
Lecron Energy and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Panda Financial
The main advantage of trading using opposite Lecron Energy and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy 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.| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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