Correlation Between Panda Financial and HeNan Splendor
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By analyzing existing cross correlation between Panda Financial Holding and HeNan Splendor Science, you can compare the effects of market volatilities on Panda Financial and HeNan Splendor 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 Panda Financial with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and HeNan Splendor.
Diversification Opportunities for Panda Financial and HeNan Splendor
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and HeNan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Panda Financial 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 Panda Financial Holding are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Panda Financial i.e., Panda Financial and HeNan Splendor go up and down completely randomly.
Pair Corralation between Panda Financial and HeNan Splendor
Assuming the 90 days trading horizon Panda Financial is expected to generate 3.2 times less return on investment than HeNan Splendor. But when comparing it to its historical volatility, Panda Financial Holding is 1.03 times less risky than HeNan Splendor. It trades about 0.0 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 890.00 in HeNan Splendor Science on October 16, 2024 and sell it today you would earn a total of 2.00 from holding HeNan Splendor Science or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. HeNan Splendor Science
Performance |
| Timeline |
| Panda Financial Holding |
| HeNan Splendor Science |
Panda Financial and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and HeNan Splendor
The main advantage of trading using opposite Panda Financial and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Panda Financial vs. Heilongjiang Publishing Media | Panda Financial vs. Runjian Communication Co | Panda Financial vs. China Publishing Media | Panda Financial vs. Sichuan Jinshi Technology |
| HeNan Splendor vs. Spring Airlines Co | HeNan Splendor vs. Guangzhou Seagull Kitchen | HeNan Splendor vs. Yindu Kitchen Equipment | HeNan Splendor vs. Hangzhou Gaoxin Rubber |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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