Correlation Between Steadfast Group and Nanjing Panda
Can any of the company-specific risk be diversified away by investing in both Steadfast Group and Nanjing Panda 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 Steadfast Group and Nanjing Panda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steadfast Group Limited and Nanjing Panda Electronics, you can compare the effects of market volatilities on Steadfast Group and Nanjing Panda 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 Steadfast Group with a short position of Nanjing Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steadfast Group and Nanjing Panda.
Diversification Opportunities for Steadfast Group and Nanjing Panda
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steadfast and Nanjing is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Steadfast Group Limited and Nanjing Panda Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Panda Electronics and Steadfast Group 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 Steadfast Group Limited are associated (or correlated) with Nanjing Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Panda Electronics has no effect on the direction of Steadfast Group i.e., Steadfast Group and Nanjing Panda go up and down completely randomly.
Pair Corralation between Steadfast Group and Nanjing Panda
Assuming the 90 days horizon Steadfast Group is expected to generate 1.7 times less return on investment than Nanjing Panda. But when comparing it to its historical volatility, Steadfast Group Limited is 1.6 times less risky than Nanjing Panda. It trades about 0.08 of its potential returns per unit of risk. Nanjing Panda Electronics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Nanjing Panda Electronics on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Nanjing Panda Electronics or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.67% |
Values | Daily Returns |
Steadfast Group Limited vs. Nanjing Panda Electronics
Performance |
Timeline |
Steadfast Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Nanjing Panda Electronics |
Steadfast Group and Nanjing Panda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Steadfast Group and Nanjing Panda
The main advantage of trading using opposite Steadfast Group and Nanjing Panda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steadfast Group position performs unexpectedly, Nanjing Panda 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 Nanjing Panda will offset losses from the drop in Nanjing Panda's long position.Steadfast Group vs. Brockhaus Capital Management | ||
Steadfast Group vs. Applied Materials | ||
Steadfast Group vs. Waste Management | ||
Steadfast Group vs. Sims Metal Management |
Nanjing Panda vs. Hon Hai Precision | ||
Nanjing Panda vs. Samsung SDI Co | ||
Nanjing Panda vs. Mitsubishi Electric | ||
Nanjing Panda vs. Sunny Optical Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |