Correlation Between Ningxia Building and Panda Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Building Materials and Panda Financial Holding, you can compare the effects of market volatilities on Ningxia Building 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 Ningxia Building with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Panda Financial.
Diversification Opportunities for Ningxia Building and Panda Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Panda is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials 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 Ningxia Building 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 Ningxia Building Materials 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 Ningxia Building i.e., Ningxia Building and Panda Financial go up and down completely randomly.
Pair Corralation between Ningxia Building and Panda Financial
Assuming the 90 days trading horizon Ningxia Building is expected to generate 10.32 times less return on investment than Panda Financial. But when comparing it to its historical volatility, Ningxia Building Materials is 1.15 times less risky than Panda Financial. It trades about 0.03 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,139 in Panda Financial Holding on August 24, 2024 and sell it today you would earn a total of 253.00 from holding Panda Financial Holding or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Panda Financial Holding
Performance |
| Timeline |
| Ningxia Building Mat |
| Panda Financial Holding |
Ningxia Building and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Panda Financial
The main advantage of trading using opposite Ningxia Building and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building 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.| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Wanhua Chemical Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building vs. Rongsheng Petrochemical Co |
| Panda Financial vs. New China Life | Panda Financial vs. Ming Yang Smart | Panda Financial vs. 159005 | Panda Financial vs. Loctek Ergonomic 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |