Correlation Between Panda Financial and Bangyan Technology
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By analyzing existing cross correlation between Panda Financial Holding and Bangyan Technology Co, you can compare the effects of market volatilities on Panda Financial and Bangyan Technology 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 Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Bangyan Technology.
Diversification Opportunities for Panda Financial and Bangyan Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Bangyan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology 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 Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Panda Financial i.e., Panda Financial and Bangyan Technology go up and down completely randomly.
Pair Corralation between Panda Financial and Bangyan Technology
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 0.76 times more return on investment than Bangyan Technology. However, Panda Financial Holding is 1.32 times less risky than Bangyan Technology. It trades about 0.1 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about 0.04 per unit of risk. If you would invest 819.00 in Panda Financial Holding on November 3, 2024 and sell it today you would earn a total of 304.00 from holding Panda Financial Holding or generate 37.12% 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. Bangyan Technology Co
Performance |
| Timeline |
| Panda Financial Holding |
| Bangyan Technology |
Panda Financial and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and Bangyan Technology
The main advantage of trading using opposite Panda Financial and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology's long position.| Panda Financial vs. Industrial and Commercial | Panda Financial vs. Agricultural Bank of | Panda Financial vs. China Construction Bank | Panda Financial vs. Bank of China |
| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology vs. China Mobile Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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