Correlation Between Nanjing Panda and BBVA Banco
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and BBVA Banco at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nanjing Panda and BBVA Banco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanjing Panda Electronics and BBVA Banco Frances, you can compare the effects of market volatilities on Nanjing Panda and BBVA Banco 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 Nanjing Panda with a short position of BBVA Banco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and BBVA Banco.
Diversification Opportunities for Nanjing Panda and BBVA Banco
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and BBVA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and BBVA Banco Frances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVA Banco Frances and Nanjing Panda 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 Nanjing Panda Electronics are associated (or correlated) with BBVA Banco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVA Banco Frances has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and BBVA Banco go up and down completely randomly.
Pair Corralation between Nanjing Panda and BBVA Banco
Assuming the 90 days horizon Nanjing Panda is expected to generate 2.32 times less return on investment than BBVA Banco. In addition to that, Nanjing Panda is 1.09 times more volatile than BBVA Banco Frances. It trades about 0.08 of its total potential returns per unit of risk. BBVA Banco Frances is currently generating about 0.2 per unit of volatility. If you would invest 731.00 in BBVA Banco Frances on October 26, 2024 and sell it today you would earn a total of 1,489 from holding BBVA Banco Frances or generate 203.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. BBVA Banco Frances
Performance |
| Timeline |
| Nanjing Panda Electronics |
| BBVA Banco Frances |
Nanjing Panda and BBVA Banco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and BBVA Banco
The main advantage of trading using opposite Nanjing Panda and BBVA Banco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, BBVA Banco 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 BBVA Banco will offset losses from the drop in BBVA Banco's long position.| Nanjing Panda vs. Hon Hai Precision | Nanjing Panda vs. Samsung SDI Co | Nanjing Panda vs. Corning Incorporated | Nanjing Panda vs. Mitsubishi Electric |
| BBVA Banco vs. Nanjing Panda Electronics | BBVA Banco vs. Nucletron Electronic Aktiengesellschaft | BBVA Banco vs. Meiko Electronics Co | BBVA Banco vs. Meli Hotels International |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |