Correlation Between Sinomach Automobile and Panda Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Panda Financial Holding, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Panda Financial.
Diversification Opportunities for Sinomach Automobile and Panda Financial
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Panda is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co 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 Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Panda Financial go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Panda Financial
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Panda Financial. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.08 times less risky than Panda Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Panda Financial Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Panda Financial Holding on October 16, 2024 and sell it today you would earn a total of 218.00 from holding Panda Financial Holding or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Panda Financial Holding
Performance |
| Timeline |
| Sinomach Automobile |
| Panda Financial Holding |
Sinomach Automobile and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Panda Financial
The main advantage of trading using opposite Sinomach Automobile and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Ye Chiu Metal | Sinomach Automobile vs. Sino Platinum Metals Co | Sinomach Automobile vs. Shanghai Ziyan Foods | Sinomach Automobile vs. Great Sun Foods Co |
| Panda Financial vs. Yankershop Food Co | Panda Financial vs. Great Sun Foods Co | Panda Financial vs. Ningbo Fangzheng Automobile | Panda Financial vs. Sinomach Automobile Co |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |