Correlation Between Panda Financial and Zhejiang Longsheng
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By analyzing existing cross correlation between Panda Financial Holding and Zhejiang Longsheng Group, you can compare the effects of market volatilities on Panda Financial and Zhejiang Longsheng 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 Zhejiang Longsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Zhejiang Longsheng.
Diversification Opportunities for Panda Financial and Zhejiang Longsheng
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panda and Zhejiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding and Zhejiang Longsheng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Longsheng 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 Zhejiang Longsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Longsheng has no effect on the direction of Panda Financial i.e., Panda Financial and Zhejiang Longsheng go up and down completely randomly.
Pair Corralation between Panda Financial and Zhejiang Longsheng
Assuming the 90 days trading horizon Panda Financial Holding is expected to generate 2.88 times more return on investment than Zhejiang Longsheng. However, Panda Financial is 2.88 times more volatile than Zhejiang Longsheng Group. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Longsheng Group is currently generating about -0.09 per unit of risk. If you would invest 1,232 in Panda Financial Holding on October 7, 2024 and sell it today you would lose (3.00) from holding Panda Financial Holding or give up 0.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Panda Financial Holding vs. Zhejiang Longsheng Group
Performance |
Timeline |
Panda Financial Holding |
Zhejiang Longsheng |
Panda Financial and Zhejiang Longsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Panda Financial and Zhejiang Longsheng
The main advantage of trading using opposite Panda Financial and Zhejiang Longsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial position performs unexpectedly, Zhejiang Longsheng 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 Zhejiang Longsheng will offset losses from the drop in Zhejiang Longsheng's long position.Panda Financial vs. PetroChina Co Ltd | Panda Financial vs. Guangxi Guiguan Electric | Panda Financial vs. Yantai North Andre | Panda Financial vs. Huaneng Lancang River |
Zhejiang Longsheng vs. Youyou Foods Co | Zhejiang Longsheng vs. TongFu Microelectronics Co | Zhejiang Longsheng vs. Quectel Wireless Solutions | Zhejiang Longsheng vs. Beijing YanDong MicroElectronic |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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