Correlation Between Panda Financial and Hua Xia
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By analyzing existing cross correlation between Panda Financial Holding and Hua Xia Bank, you can compare the effects of market volatilities on Panda Financial and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Hua Xia.
Diversification Opportunities for Panda Financial and Hua Xia
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and Hua is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Panda Financial i.e., Panda Financial and Hua Xia go up and down completely randomly.
Pair Corralation between Panda Financial and Hua Xia
Assuming the 90 days trading horizon Panda Financial is expected to generate 6.15 times less return on investment than Hua Xia. In addition to that, Panda Financial is 2.04 times more volatile than Hua Xia Bank. It trades about 0.01 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.07 per unit of volatility. If you would invest 555.00 in Hua Xia Bank on August 25, 2024 and sell it today you would earn a total of 163.00 from holding Hua Xia Bank or generate 29.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. Hua Xia Bank
Performance |
| Timeline |
| Panda Financial Holding |
| Hua Xia Bank |
Panda Financial and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Hua Xia
The main advantage of trading using opposite Panda Financial and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Agricultural Bank of | Hua Xia vs. Industrial and Commercial | Hua Xia vs. Bank of China | Hua Xia vs. China Construction Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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