Correlation Between Panda Financial and Xiamen Bank
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By analyzing existing cross correlation between Panda Financial Holding and Xiamen Bank Co, you can compare the effects of market volatilities on Panda Financial and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Xiamen Bank.
Diversification Opportunities for Panda Financial and Xiamen Bank
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panda and Xiamen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Panda Financial i.e., Panda Financial and Xiamen Bank go up and down completely randomly.
Pair Corralation between Panda Financial and Xiamen Bank
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 2.11 times more return on investment than Xiamen Bank. However, Panda Financial is 2.11 times more volatile than Xiamen Bank Co. It trades about 0.03 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.01 per unit of risk. If you would invest 1,200 in Panda Financial Holding on August 29, 2024 and sell it today you would earn a total of 234.00 from holding Panda Financial Holding or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. Xiamen Bank Co
Performance |
| Timeline |
| Panda Financial Holding |
| Xiamen Bank |
Panda Financial and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Xiamen Bank
The main advantage of trading using opposite Panda Financial and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank'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 |
| Xiamen Bank vs. China Nonferrous Metal | Xiamen Bank vs. Pengxin International Mining | Xiamen Bank vs. Guangzhou Haozhi Industrial | Xiamen Bank vs. Miracll Chemicals Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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