Correlation Between Panda Financial and Jinlong Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Panda Financial Holding and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Panda Financial and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Jinlong Machinery.
Diversification Opportunities for Panda Financial and Jinlong Machinery
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and Jinlong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Panda Financial i.e., Panda Financial and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Panda Financial and Jinlong Machinery
Assuming the 90 days trading horizon Panda Financial is expected to generate 1.51 times less return on investment than Jinlong Machinery. But when comparing it to its historical volatility, Panda Financial Holding is 1.32 times less risky than Jinlong Machinery. It trades about 0.01 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Jinlong Machinery Electronic on October 11, 2024 and sell it today you would lose (82.00) from holding Jinlong Machinery Electronic or give up 15.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Panda Financial Holding |
| Jinlong Machinery |
Panda Financial and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Jinlong Machinery
The main advantage of trading using opposite Panda Financial and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Panda Financial vs. Porton Fine Chemicals | Panda Financial vs. Jiangsu Financial Leasing | Panda Financial vs. Vohringer Home Technology | Panda Financial vs. Luolai Home Textile |
| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |