Correlation Between Panda Financial and Huayi Brothers
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By analyzing existing cross correlation between Panda Financial Holding and Huayi Brothers Media, you can compare the effects of market volatilities on Panda Financial and Huayi Brothers 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 Huayi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Huayi Brothers.
Diversification Opportunities for Panda Financial and Huayi Brothers
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panda and Huayi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Huayi Brothers Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huayi Brothers Media 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 Huayi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huayi Brothers Media has no effect on the direction of Panda Financial i.e., Panda Financial and Huayi Brothers go up and down completely randomly.
Pair Corralation between Panda Financial and Huayi Brothers
Assuming the 90 days trading horizon Panda Financial is expected to generate 2.91 times less return on investment than Huayi Brothers. But when comparing it to its historical volatility, Panda Financial Holding is 1.36 times less risky than Huayi Brothers. It trades about 0.01 of its potential returns per unit of risk. Huayi Brothers Media is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Huayi Brothers Media on October 16, 2024 and sell it today you would lose (19.00) from holding Huayi Brothers Media or give up 7.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. Huayi Brothers Media
Performance |
| Timeline |
| Panda Financial Holding |
| Huayi Brothers Media |
Panda Financial and Huayi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Huayi Brothers
The main advantage of trading using opposite Panda Financial and Huayi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Huayi Brothers 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 Huayi Brothers will offset losses from the drop in Huayi Brothers' long position.| 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 |
| Huayi Brothers vs. Ye Chiu Metal | Huayi Brothers vs. Zhejiang Yongjin Metal | Huayi Brothers vs. Meinian Onehealth Healthcare | Huayi Brothers vs. ZYF Lopsking Aluminum |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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