Correlation Between Guangdong Jingyi and Postal Savings
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Postal Savings Bank, you can compare the effects of market volatilities on Guangdong Jingyi and Postal Savings 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 Guangdong Jingyi with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Postal Savings.
Diversification Opportunities for Guangdong Jingyi and Postal Savings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Postal is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Postal Savings go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Postal Savings
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.44 times more return on investment than Postal Savings. However, Guangdong Jingyi is 1.44 times more volatile than Postal Savings Bank. It trades about 0.19 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.09 per unit of risk. If you would invest 709.00 in Guangdong Jingyi Metal on September 22, 2024 and sell it today you would earn a total of 52.00 from holding Guangdong Jingyi Metal or generate 7.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Postal Savings Bank
Performance |
Timeline |
Guangdong Jingyi Metal |
Postal Savings Bank |
Guangdong Jingyi and Postal Savings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Postal Savings
The main advantage of trading using opposite Guangdong Jingyi and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.Guangdong Jingyi vs. Mengtian Home Group | Guangdong Jingyi vs. DO Home Collection | Guangdong Jingyi vs. Huaxia Fund Management | Guangdong Jingyi vs. UE Furniture Co |
Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Gome Telecom Equipment | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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