Correlation Between Panda Financial and Peoples Insurance
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By analyzing existing cross correlation between Panda Financial Holding and Peoples Insurance of, you can compare the effects of market volatilities on Panda Financial and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Peoples Insurance.
Diversification Opportunities for Panda Financial and Peoples Insurance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Peoples is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Panda Financial i.e., Panda Financial and Peoples Insurance go up and down completely randomly.
Pair Corralation between Panda Financial and Peoples Insurance
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 1.7 times more return on investment than Peoples Insurance. However, Panda Financial is 1.7 times more volatile than Peoples Insurance of. It trades about 0.03 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.02 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panda Financial Holding vs. Peoples Insurance of
Performance |
| Timeline |
| Panda Financial Holding |
| Peoples Insurance |
Panda Financial and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Peoples Insurance
The main advantage of trading using opposite Panda Financial and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance'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 |
| Peoples Insurance vs. PetroChina Co Ltd | Peoples Insurance vs. China Mobile Limited | Peoples Insurance vs. CNOOC Limited | Peoples Insurance vs. Ping An Insurance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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