Correlation Between Great Sun and Panda Financial
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By analyzing existing cross correlation between Great Sun Foods Co and Panda Financial Holding, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Panda Financial.
Diversification Opportunities for Great Sun and Panda Financial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Panda is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co 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 Great Sun 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 Great Sun Foods Co 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 Great Sun i.e., Great Sun and Panda Financial go up and down completely randomly.
Pair Corralation between Great Sun and Panda Financial
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 0.96 times more return on investment than Panda Financial. However, Great Sun Foods Co is 1.05 times less risky than Panda Financial. It trades about -0.08 of its potential returns per unit of risk. Panda Financial Holding is currently generating about -0.2 per unit of risk. If you would invest 497.00 in Great Sun Foods Co on October 30, 2024 and sell it today you would lose (56.00) from holding Great Sun Foods Co or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Panda Financial Holding
Performance |
| Timeline |
| Great Sun Foods |
| Panda Financial Holding |
Great Sun and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Panda Financial
The main advantage of trading using opposite Great Sun and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Lecron Energy Saving | Great Sun vs. Cicc Fund Management | Great Sun vs. Ningbo Fangzheng Automobile | Great Sun vs. Harvest Fund Management |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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