Correlation Between Jiangsu Financial and Panda Financial
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Panda Financial Holding, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Panda Financial.
Diversification Opportunities for Jiangsu Financial and Panda Financial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Panda is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Panda Financial go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Panda Financial
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Panda Financial. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 1.73 times less risky than Panda Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Panda Financial Holding is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Panda Financial Holding on September 1, 2024 and sell it today you would earn a total of 266.00 from holding Panda Financial Holding or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Panda Financial Holding
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Panda Financial Holding |
Jiangsu Financial and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Panda Financial
The main advantage of trading using opposite Jiangsu Financial and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. TongFu Microelectronics Co | Jiangsu Financial vs. Epoxy Base Electronic | Jiangsu Financial vs. CICC Fund Management | Jiangsu Financial vs. Harvest Fund Management |
| Panda Financial vs. BeiGene | Panda Financial vs. Kweichow Moutai Co | Panda Financial vs. Beijing Roborock Technology | Panda Financial vs. G bits Network 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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