Correlation Between Poly Real and Panda Financial
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By analyzing existing cross correlation between Poly Real Estate and Panda Financial Holding, you can compare the effects of market volatilities on Poly Real 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 Poly Real with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Panda Financial.
Diversification Opportunities for Poly Real and Panda Financial
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Poly and Panda is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate 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 Poly Real 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 Poly Real Estate 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 Poly Real i.e., Poly Real and Panda Financial go up and down completely randomly.
Pair Corralation between Poly Real and Panda Financial
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Panda Financial. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.25 times less risky than Panda Financial. The stock trades about -0.04 of its potential returns per unit of risk. The Panda Financial Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,574 in Panda Financial Holding on September 26, 2024 and sell it today you would lose (275.00) from holding Panda Financial Holding or give up 17.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Poly Real Estate vs. Panda Financial Holding
Performance |
| Timeline |
| Poly Real Estate |
| Panda Financial Holding |
Poly Real and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Panda Financial
The main advantage of trading using opposite Poly Real and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real 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.| Poly Real vs. PetroChina Co Ltd | Poly Real vs. China Mobile Limited | Poly Real vs. CNOOC Limited | Poly Real vs. Ping An Insurance |
| Panda Financial vs. China State Construction | Panda Financial vs. Poly Real Estate | Panda Financial vs. China Vanke Co | Panda Financial vs. China Merchants Shekou |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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