Correlation Between Shandong Iron and Panda Financial
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By analyzing existing cross correlation between Shandong Iron and and Panda Financial Holding, you can compare the effects of market volatilities on Shandong Iron 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 Shandong Iron with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and Panda Financial.
Diversification Opportunities for Shandong Iron and Panda Financial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Panda is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and 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 Shandong Iron 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 Shandong Iron and 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 Shandong Iron i.e., Shandong Iron and Panda Financial go up and down completely randomly.
Pair Corralation between Shandong Iron and Panda Financial
Assuming the 90 days trading horizon Shandong Iron and is expected to generate 0.43 times more return on investment than Panda Financial. However, Shandong Iron and is 2.32 times less risky than Panda Financial. It trades about -0.53 of its potential returns per unit of risk. Panda Financial Holding is currently generating about -0.27 per unit of risk. If you would invest 161.00 in Shandong Iron and on October 14, 2024 and sell it today you would lose (28.00) from holding Shandong Iron and or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Iron and vs. Panda Financial Holding
Performance |
| Timeline |
| Shandong Iron |
| Panda Financial Holding |
Shandong Iron and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and Panda Financial
The main advantage of trading using opposite Shandong Iron and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron 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.| Shandong Iron vs. Shantui Construction Machinery | Shandong Iron vs. Shaanxi Construction Machinery | Shandong Iron vs. Weichai Heavy Machinery | Shandong Iron vs. Sinomach General Machinery |
| Panda Financial vs. Shandong Iron and | Panda Financial vs. Shaanxi Meineng Clean | Panda Financial vs. Shanghai Jinfeng Wine | Panda Financial vs. Eit Environmental Development |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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