Correlation Between Panda Financial and Ping An
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By analyzing existing cross correlation between Panda Financial Holding and Ping An Insurance, you can compare the effects of market volatilities on Panda Financial and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Ping An.
Diversification Opportunities for Panda Financial and Ping An
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and Ping is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Panda Financial i.e., Panda Financial and Ping An go up and down completely randomly.
Pair Corralation between Panda Financial and Ping An
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 1.52 times more return on investment than Ping An. However, Panda Financial is 1.52 times more volatile than Ping An Insurance. It trades about 0.29 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.1 per unit of risk. If you would invest 1,251 in Panda Financial Holding on September 1, 2024 and sell it today you would earn a total of 266.00 from holding Panda Financial Holding or generate 21.26% 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. Ping An Insurance
Performance |
| Timeline |
| Panda Financial Holding |
| Ping An Insurance |
Panda Financial and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Ping An
The main advantage of trading using opposite Panda Financial and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An'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 |
| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
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.
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