Correlation Between Panda Financial and Industrial
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By analyzing existing cross correlation between Panda Financial Holding and Industrial and Commercial, you can compare the effects of market volatilities on Panda Financial and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Industrial.
Diversification Opportunities for Panda Financial and Industrial
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Panda and Industrial is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Panda Financial i.e., Panda Financial and Industrial go up and down completely randomly.
Pair Corralation between Panda Financial and Industrial
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 3.63 times more return on investment than Industrial. However, Panda Financial is 3.63 times more volatile than Industrial and Commercial. It trades about 0.09 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.32 per unit of risk. If you would invest 1,370 in Panda Financial Holding on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Panda Financial Holding or generate 5.4% 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. Industrial and Commercial
Performance |
| Timeline |
| Panda Financial Holding |
| Industrial and Commercial |
Panda Financial and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Industrial
The main advantage of trading using opposite Panda Financial and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Panda Financial vs. China Petroleum Chemical | Panda Financial vs. PetroChina Co Ltd | Panda Financial vs. China Mobile Limited | Panda Financial vs. Industrial and Commercial |
| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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