Correlation Between Nanjing Panda and AXA SA

Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and AXA SA 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 Nanjing Panda and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nanjing Panda Electronics and AXA SA, you can compare the effects of market volatilities on Nanjing Panda and AXA SA 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 Nanjing Panda with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and AXA SA.

Diversification Opportunities for Nanjing Panda and AXA SA

0.0

Correlation Coefficient

Nanjing Panda  AXA SA

Pay attention - limited upside

The 3 months correlation between Nanjing and AXA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Nanjing Panda 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 Nanjing Panda Electronics are associated (or correlated) with AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and AXA SA go up and down completely randomly.

Pair Corralation between Nanjing Panda and AXA SA

If you would invest  3,352  in AXA SA on December 20, 2024 and sell it today you would earn a total of  630.00  from holding AXA SA or generate 18.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Nanjing Panda Electronics  vs.  AXA SA

Nanjing Panda Electronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nanjing Panda Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Nanjing Panda is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

AXA SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXA SA are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, AXA SA displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nanjing Panda and AXA SA

The main advantage of trading using opposite Nanjing Panda and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA's long position.

The idea behind Nanjing Panda Electronics and AXA SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.