Correlation Between Industrial and Panda Financial
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By analyzing existing cross correlation between Industrial and Commercial and Panda Financial Holding, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Panda Financial.
Diversification Opportunities for Industrial and Panda Financial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Panda is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Panda Financial go up and down completely randomly.
Pair Corralation between Industrial and Panda Financial
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.41 times more return on investment than Panda Financial. However, Industrial and Commercial is 2.45 times less risky than Panda Financial. It trades about 0.1 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.03 per unit of risk. If you would invest 473.00 in Industrial and Commercial on September 4, 2024 and sell it today you would earn a total of 148.00 from holding Industrial and Commercial or generate 31.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Panda Financial Holding
Performance |
| Timeline |
| Industrial and Commercial |
| Panda Financial Holding |
Industrial and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Panda Financial
The main advantage of trading using opposite Industrial and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
| Panda Financial vs. Industrial and Commercial | Panda Financial vs. China Construction Bank | Panda Financial vs. Agricultural Bank of | Panda Financial vs. Bank of China |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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