Correlation Between Panda Financial and Jiangsu Jinling
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By analyzing existing cross correlation between Panda Financial Holding and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Panda Financial and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Jiangsu Jinling.
Diversification Opportunities for Panda Financial and Jiangsu Jinling
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Panda Financial i.e., Panda Financial and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Panda Financial and Jiangsu Jinling
Assuming the 90 days trading horizon Panda Financial is expected to generate 1.33 times less return on investment than Jiangsu Jinling. In addition to that, Panda Financial is 1.28 times more volatile than Jiangsu Jinling Sports. It trades about 0.06 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.11 per unit of volatility. If you would invest 1,435 in Jiangsu Jinling Sports on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Jiangsu Jinling Sports or generate 5.71% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Panda Financial Holding |
| Jiangsu Jinling Sports |
Panda Financial and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Jiangsu Jinling
The main advantage of trading using opposite Panda Financial and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Panda Financial vs. China Petroleum Chemical | Panda Financial vs. PetroChina Co Ltd | Panda Financial vs. China Mobile Limited | Panda Financial vs. Industrial and Commercial |
| Jiangsu Jinling vs. Lutian Machinery Co | Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Bank of China | Jiangsu Jinling vs. Gansu Jiu Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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