Correlation Between Panda Financial and Zhuzhou Kibing
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By analyzing existing cross correlation between Panda Financial Holding and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Panda Financial and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Zhuzhou Kibing.
Diversification Opportunities for Panda Financial and Zhuzhou Kibing
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panda and Zhuzhou is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Panda Financial i.e., Panda Financial and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Panda Financial and Zhuzhou Kibing
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 1.08 times more return on investment than Zhuzhou Kibing. However, Panda Financial is 1.08 times more volatile than Zhuzhou Kibing Group. It trades about 0.13 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.03 per unit of risk. If you would invest 827.00 in Panda Financial Holding on September 27, 2024 and sell it today you would earn a total of 407.00 from holding Panda Financial Holding or generate 49.21% 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. Zhuzhou Kibing Group
Performance |
| Timeline |
| Panda Financial Holding |
| Zhuzhou Kibing Group |
Panda Financial and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Zhuzhou Kibing
The main advantage of trading using opposite Panda Financial and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Panda Financial vs. China State Construction | Panda Financial vs. Poly Real Estate | Panda Financial vs. China Vanke Co | Panda Financial vs. China Merchants Shekou |
| Zhuzhou Kibing vs. Jiangsu Jinling Sports | Zhuzhou Kibing vs. Panda Financial Holding | Zhuzhou Kibing vs. China Sports Industry | Zhuzhou Kibing vs. Caihong Display Devices |
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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