Correlation Between Panda Financial and Guangzhou Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Panda Financial Holding and Guangzhou Automobile Group, you can compare the effects of market volatilities on Panda Financial and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Guangzhou Automobile.
Diversification Opportunities for Panda Financial and Guangzhou Automobile
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panda and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Panda Financial i.e., Panda Financial and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Panda Financial and Guangzhou Automobile
Assuming the 90 days trading horizon Panda Financial Holding is expected to under-perform the Guangzhou Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Panda Financial Holding is 1.29 times less risky than Guangzhou Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Guangzhou Automobile Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Guangzhou Automobile Group on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Guangzhou Automobile Group or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Panda Financial Holding |
| Guangzhou Automobile |
Panda Financial and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Guangzhou Automobile
The main advantage of trading using opposite Panda Financial and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile's long position.| Panda Financial vs. Kweichow Moutai Co | Panda Financial vs. Contemporary Amperex Technology | Panda Financial vs. G bits Network Technology | Panda Financial vs. BYD Co Ltd |
| Guangzhou Automobile vs. Cambricon Technologies Corp | Guangzhou Automobile vs. Loongson Technology Corp | Guangzhou Automobile vs. Shenzhen Fortune Trend | Guangzhou Automobile vs. Chongqing Road Bridge |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |