Correlation Between Panda Financial and BeiGene
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By analyzing existing cross correlation between Panda Financial Holding and BeiGene, you can compare the effects of market volatilities on Panda Financial and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and BeiGene.
Diversification Opportunities for Panda Financial and BeiGene
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and BeiGene is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Panda Financial i.e., Panda Financial and BeiGene go up and down completely randomly.
Pair Corralation between Panda Financial and BeiGene
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate about the same return on investment as BeiGene. However, Panda Financial is 1.08 times more volatile than BeiGene. It trades about 0.04 of its potential returns per unit of risk. BeiGene is currently producing about 0.04 per unit of risk. If you would invest 13,035 in BeiGene on August 31, 2024 and sell it today you would earn a total of 4,565 from holding BeiGene or generate 35.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Panda Financial Holding vs. BeiGene
Performance |
| Timeline |
| Panda Financial Holding |
| BeiGene |
Panda Financial and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panda Financial and BeiGene
The main advantage of trading using opposite Panda Financial and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Panda Financial vs. Agricultural Bank of | Panda Financial vs. Hangzhou Pinming Software | Panda Financial vs. Shandong Mining Machinery | Panda Financial vs. GuoChuang Software Co |
| BeiGene vs. Vanfund Urban Investment | BeiGene vs. Jilin Chemical Fibre | BeiGene vs. Shenzhen Noposion Agrochemicals | BeiGene vs. Shenzhen Centralcon Investment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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