Correlation Between Chison Medical and Panda Financial
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By analyzing existing cross correlation between Chison Medical Technologies and Panda Financial Holding, you can compare the effects of market volatilities on Chison Medical 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 Chison Medical with a short position of Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chison Medical and Panda Financial.
Diversification Opportunities for Chison Medical and Panda Financial
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chison and Panda is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chison Medical Technologies 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 Chison Medical 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 Chison Medical Technologies 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 Chison Medical i.e., Chison Medical and Panda Financial go up and down completely randomly.
Pair Corralation between Chison Medical and Panda Financial
Assuming the 90 days trading horizon Chison Medical Technologies is expected to generate 1.39 times more return on investment than Panda Financial. However, Chison Medical is 1.39 times more volatile than Panda Financial Holding. It trades about 0.14 of its potential returns per unit of risk. Panda Financial Holding is currently generating about -0.02 per unit of risk. If you would invest 2,026 in Chison Medical Technologies on December 10, 2024 and sell it today you would earn a total of 1,554 from holding Chison Medical Technologies or generate 76.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chison Medical Technologies vs. Panda Financial Holding
Performance |
Timeline |
Chison Medical Techn |
Panda Financial Holding |
Chison Medical and Panda Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chison Medical and Panda Financial
The main advantage of trading using opposite Chison Medical and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chison Medical 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.Chison Medical vs. Chongqing Brewery Co | Chison Medical vs. Guangzhou Zhujiang Brewery | Chison Medical vs. Hainan Mining Co | Chison Medical vs. Rising Nonferrous Metals |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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