Correlation Between Panda Financial and Xizi Clean
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By analyzing existing cross correlation between Panda Financial Holding and Xizi Clean Energy, you can compare the effects of market volatilities on Panda Financial and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Xizi Clean.
Diversification Opportunities for Panda Financial and Xizi Clean
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Xizi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Panda Financial i.e., Panda Financial and Xizi Clean go up and down completely randomly.
Pair Corralation between Panda Financial and Xizi Clean
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 1.49 times more return on investment than Xizi Clean. However, Panda Financial is 1.49 times more volatile than Xizi Clean Energy. It trades about 0.29 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.17 per unit of risk. If you would invest 1,251 in Panda Financial Holding on September 1, 2024 and sell it today you would earn a total of 266.00 from holding Panda Financial Holding or generate 21.26% 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. Xizi Clean Energy
Performance |
| Timeline |
| Panda Financial Holding |
| Xizi Clean Energy |
Panda Financial and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Xizi Clean
The main advantage of trading using opposite Panda Financial and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Panda Financial vs. BeiGene | Panda Financial vs. Kweichow Moutai Co | Panda Financial vs. Beijing Roborock Technology | Panda Financial vs. G bits Network Technology |
| Xizi Clean vs. Miracll Chemicals Co | Xizi Clean vs. Ningbo Kangqiang Electronics | Xizi Clean vs. Ping An Insurance | Xizi Clean vs. Leyard Optoelectronic |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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