Correlation Between Jiangsu Jinling and Panda Financial
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Panda Financial Holding, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Panda Financial.
Diversification Opportunities for Jiangsu Jinling and Panda Financial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Panda is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Panda Financial go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Panda Financial
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.78 times more return on investment than Panda Financial. However, Jiangsu Jinling Sports is 1.28 times less risky than Panda Financial. It trades about 0.11 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.06 per unit of risk. If you would invest 1,435 in Jiangsu Jinling Sports on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Jiangsu Jinling Sports or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Panda Financial Holding
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Panda Financial Holding |
Jiangsu Jinling and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Panda Financial
The main advantage of trading using opposite Jiangsu Jinling and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.| Jiangsu Jinling vs. Lutian Machinery Co | Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Bank of China | Jiangsu Jinling vs. Gansu Jiu Steel |
| Panda Financial vs. China Petroleum Chemical | Panda Financial vs. PetroChina Co Ltd | Panda Financial vs. China Mobile Limited | Panda Financial vs. Industrial and Commercial |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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