Correlation Between Wuhan Yangtze and Panda Financial
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Panda Financial Holding, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Panda Financial.
Diversification Opportunities for Wuhan Yangtze and Panda Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Panda is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Panda Financial go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Panda Financial
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 0.79 times more return on investment than Panda Financial. However, Wuhan Yangtze Communication is 1.26 times less risky than Panda Financial. It trades about -0.45 of its potential returns per unit of risk. Panda Financial Holding is currently generating about -0.36 per unit of risk. If you would invest 2,708 in Wuhan Yangtze Communication on October 15, 2024 and sell it today you would lose (646.00) from holding Wuhan Yangtze Communication or give up 23.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Panda Financial Holding
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Panda Financial Holding |
Wuhan Yangtze and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Panda Financial
The main advantage of trading using opposite Wuhan Yangtze and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Chengdu Spaceon Electronics | Wuhan Yangtze vs. China Asset Management | Wuhan Yangtze vs. Ye Chiu Metal | Wuhan Yangtze vs. Huaxia Fund Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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