Correlation Between Panda Financial and Shenzhen MYS
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By analyzing existing cross correlation between Panda Financial Holding and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Panda Financial and Shenzhen MYS 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 Panda Financial with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Shenzhen MYS.
Diversification Opportunities for Panda Financial and Shenzhen MYS
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panda and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Panda Financial 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 Panda Financial Holding are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Panda Financial i.e., Panda Financial and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Panda Financial and Shenzhen MYS
Assuming the 90 days trading horizon Panda Financial is expected to generate 2.15 times less return on investment than Shenzhen MYS. But when comparing it to its historical volatility, Panda Financial Holding is 1.25 times less risky than Shenzhen MYS. It trades about 0.14 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Shenzhen MYS Environmental on September 12, 2024 and sell it today you would earn a total of 152.00 from holding Shenzhen MYS Environmental or generate 62.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Panda Financial Holding vs. Shenzhen MYS Environmental
Performance |
Timeline |
Panda Financial Holding |
Shenzhen MYS Environ |
Panda Financial and Shenzhen MYS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Panda Financial and Shenzhen MYS
The main advantage of trading using opposite Panda Financial and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.Panda Financial vs. China Petroleum Chemical | Panda Financial vs. PetroChina Co Ltd | Panda Financial vs. China Mobile Limited | Panda Financial vs. Industrial and Commercial |
Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Rongsheng Petrochemical Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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