Correlation Between Dow Jones and Panda Financial
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By analyzing existing cross correlation between Dow Jones Industrial and Panda Financial Holding, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Panda Financial.
Diversification Opportunities for Dow Jones and Panda Financial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and Panda is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and Panda Financial go up and down completely randomly.
Pair Corralation between Dow Jones and Panda Financial
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.24 times more return on investment than Panda Financial. However, Dow Jones Industrial is 4.13 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 0.0 per unit of risk. If you would invest 3,369,685 in Dow Jones Industrial on November 7, 2024 and sell it today you would earn a total of 1,085,919 from holding Dow Jones Industrial or generate 32.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
Dow Jones Industrial vs. Panda Financial Holding
Performance |
| Timeline |
Dow Jones and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Dow Jones and Panda Financial
The main advantage of trading using opposite Dow Jones and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Mako Mining Corp | Dow Jones vs. Reyna Silver Corp | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Trupanion |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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