Correlation Between AVIC Fund and Panda Financial
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By analyzing existing cross correlation between AVIC Fund Management and Panda Financial Holding, you can compare the effects of market volatilities on AVIC Fund 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 AVIC Fund with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Panda Financial.
Diversification Opportunities for AVIC Fund and Panda Financial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVIC and Panda is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management 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 AVIC Fund 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 AVIC Fund Management 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 AVIC Fund i.e., AVIC Fund and Panda Financial go up and down completely randomly.
Pair Corralation between AVIC Fund and Panda Financial
Assuming the 90 days trading horizon AVIC Fund is expected to generate 20.32 times less return on investment than Panda Financial. But when comparing it to its historical volatility, AVIC Fund Management is 14.83 times less risky than Panda Financial. It trades about 0.21 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Panda Financial Holding on September 1, 2024 and sell it today you would earn a total of 266.00 from holding Panda Financial Holding or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Panda Financial Holding
Performance |
| Timeline |
| AVIC Fund Management |
| Panda Financial Holding |
AVIC Fund and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Panda Financial
The main advantage of trading using opposite AVIC Fund and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund 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.| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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