Correlation Between Panda Financial and Fangda Special
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By analyzing existing cross correlation between Panda Financial Holding and Fangda Special Steel, you can compare the effects of market volatilities on Panda Financial and Fangda Special 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 Fangda Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Fangda Special.
Diversification Opportunities for Panda Financial and Fangda Special
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panda and Fangda is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Fangda Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fangda Special Steel 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 Fangda Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fangda Special Steel has no effect on the direction of Panda Financial i.e., Panda Financial and Fangda Special go up and down completely randomly.
Pair Corralation between Panda Financial and Fangda Special
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 1.88 times more return on investment than Fangda Special. However, Panda Financial is 1.88 times more volatile than Fangda Special Steel. It trades about 0.0 of its potential returns per unit of risk. Fangda Special Steel is currently generating about -0.04 per unit of risk. If you would invest 1,384 in Panda Financial Holding on October 29, 2024 and sell it today you would lose (254.00) from holding Panda Financial Holding or give up 18.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Panda Financial Holding vs. Fangda Special Steel
Performance |
Timeline |
Panda Financial Holding |
Fangda Special Steel |
Panda Financial and Fangda Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Panda Financial and Fangda Special
The main advantage of trading using opposite Panda Financial and Fangda Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Fangda Special 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 Fangda Special will offset losses from the drop in Fangda Special's long position.Panda Financial vs. Olympic Circuit Technology | Panda Financial vs. Shenzhen Centralcon Investment | Panda Financial vs. Xiamen Insight Investment | Panda Financial vs. Nuode Investment Co |
Fangda Special vs. Zijin Mining Group | Fangda Special vs. Wanhua Chemical Group | Fangda Special vs. Baoshan Iron Steel | Fangda Special vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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