Correlation Between Beijing Mainstreets and Panda Financial
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Panda Financial Holding, you can compare the effects of market volatilities on Beijing Mainstreets 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 Beijing Mainstreets with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Panda Financial.
Diversification Opportunities for Beijing Mainstreets and Panda Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Panda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment 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 Beijing Mainstreets 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 Beijing Mainstreets Investment 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 Beijing Mainstreets i.e., Beijing Mainstreets and Panda Financial go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Panda Financial
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Panda Financial. In addition to that, Beijing Mainstreets is 1.4 times more volatile than Panda Financial Holding. It trades about -0.04 of its total potential returns per unit of risk. Panda Financial Holding is currently generating about 0.0 per unit of volatility. If you would invest 1,501 in Panda Financial Holding on September 30, 2024 and sell it today you would lose (244.00) from holding Panda Financial Holding or give up 16.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Mainstreets Investment vs. Panda Financial Holding
Performance |
Timeline |
Beijing Mainstreets |
Panda Financial Holding |
Beijing Mainstreets and Panda Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Mainstreets and Panda Financial
The main advantage of trading using opposite Beijing Mainstreets and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets 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.Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. China Mobile Limited | Beijing Mainstreets vs. CNOOC Limited | Beijing Mainstreets vs. Ping An Insurance |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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