Correlation Between Wuhan Xianglong and Panda Financial
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By analyzing existing cross correlation between Wuhan Xianglong Power and Panda Financial Holding, you can compare the effects of market volatilities on Wuhan Xianglong and Panda Financial 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 Wuhan Xianglong with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Panda Financial.
Diversification Opportunities for Wuhan Xianglong and Panda Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Panda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Panda Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Financial Holding and Wuhan Xianglong 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 Wuhan Xianglong Power are associated (or correlated) with Panda Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Financial Holding has no effect on the direction of Wuhan Xianglong i.e., Wuhan Xianglong and Panda Financial go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Panda Financial
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.41 times more return on investment than Panda Financial. However, Wuhan Xianglong is 1.41 times more volatile than Panda Financial Holding. It trades about 0.15 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.13 per unit of risk. If you would invest 671.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 557.00 from holding Wuhan Xianglong Power or generate 83.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Panda Financial Holding
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Panda Financial Holding |
Wuhan Xianglong and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Panda Financial
The main advantage of trading using opposite Wuhan Xianglong and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong position performs unexpectedly, Panda Financial 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 Panda Financial will offset losses from the drop in Panda Financial's long position.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| Panda Financial vs. Chongqing Road Bridge | Panda Financial vs. Wuhan Xianglong Power | Panda Financial vs. Empyrean Technology Co | Panda Financial vs. Yuanjie Semiconductor Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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