Correlation Between Panda Financial and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Panda Financial Holding and Dow Jones Industrial, you can compare the effects of market volatilities on Panda Financial and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Dow Jones.
Diversification Opportunities for Panda Financial and Dow Jones
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Dow is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Panda Financial i.e., Panda Financial and Dow Jones go up and down completely randomly.
Pair Corralation between Panda Financial and Dow Jones
Assuming the 90 days trading horizon Panda Financial Holding is expected to under-perform the Dow Jones. In addition to that, Panda Financial is 3.93 times more volatile than Dow Jones Industrial. It trades about -0.25 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.35 per unit of volatility. If you would invest 4,257,373 in Dow Jones Industrial on October 29, 2024 and sell it today you would earn a total of 213,985 from holding Dow Jones Industrial or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Panda Financial Holding vs. Dow Jones Industrial
Performance |
| Timeline |
Panda Financial and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Panda Financial Holding
Pair trading matchups for Panda Financial
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Panda Financial and Dow Jones
The main advantage of trading using opposite Panda Financial and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Panda Financial vs. Olympic Circuit Technology | Panda Financial vs. Shenzhen Centralcon Investment | Panda Financial vs. Xiamen Insight Investment | Panda Financial vs. Nuode Investment Co |
| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |