Correlation Between Ningbo Fangzheng and Panda Financial
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Panda Financial Holding, you can compare the effects of market volatilities on Ningbo Fangzheng 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 Ningbo Fangzheng with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Panda Financial.
Diversification Opportunities for Ningbo Fangzheng and Panda Financial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Panda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile 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 Ningbo Fangzheng 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 Ningbo Fangzheng Automobile 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 Ningbo Fangzheng i.e., Ningbo Fangzheng and Panda Financial go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Panda Financial
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 0.85 times more return on investment than Panda Financial. However, Ningbo Fangzheng Automobile is 1.17 times less risky than Panda Financial. It trades about -0.06 of its potential returns per unit of risk. Panda Financial Holding is currently generating about -0.2 per unit of risk. If you would invest 1,623 in Ningbo Fangzheng Automobile on October 30, 2024 and sell it today you would lose (128.00) from holding Ningbo Fangzheng Automobile or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Panda Financial Holding
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Panda Financial Holding |
Ningbo Fangzheng and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Panda Financial
The main advantage of trading using opposite Ningbo Fangzheng and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng 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.| Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Jiangsu Pacific Quartz | Ningbo Fangzheng vs. Shenzhen Transsion Holdings | Ningbo Fangzheng vs. Beijing Roborock Technology |
| Panda Financial vs. Chengtun Mining Group | Panda Financial vs. Rising Nonferrous Metals | Panda Financial vs. Qingdao Choho Industrial | Panda Financial vs. Guangdong Jingyi Metal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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