Correlation Between Foxconn Industrial and Postal Savings
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By analyzing existing cross correlation between Foxconn Industrial Internet and Postal Savings Bank, you can compare the effects of market volatilities on Foxconn Industrial 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 Foxconn Industrial with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxconn Industrial and Postal Savings.
Diversification Opportunities for Foxconn Industrial and Postal Savings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Foxconn and Postal is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Foxconn Industrial Internet 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 Foxconn Industrial 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 Foxconn Industrial Internet 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 Foxconn Industrial i.e., Foxconn Industrial and Postal Savings go up and down completely randomly.
Pair Corralation between Foxconn Industrial and Postal Savings
Assuming the 90 days trading horizon Foxconn Industrial Internet is expected to under-perform the Postal Savings. In addition to that, Foxconn Industrial is 1.47 times more volatile than Postal Savings Bank. It trades about -0.21 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.1 per unit of volatility. If you would invest 554.00 in Postal Savings Bank on October 13, 2024 and sell it today you would lose (21.00) from holding Postal Savings Bank or give up 3.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Foxconn Industrial Internet vs. Postal Savings Bank
Performance |
Timeline |
Foxconn Industrial |
Postal Savings Bank |
Foxconn Industrial and Postal Savings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Foxconn Industrial and Postal Savings
The main advantage of trading using opposite Foxconn Industrial and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxconn Industrial 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.Foxconn Industrial vs. Sportsoul Co Ltd | Foxconn Industrial vs. Guangzhou Restaurants Group | Foxconn Industrial vs. Haima Automobile Group | Foxconn Industrial vs. Dongfeng Automobile Co |
Postal Savings vs. Industrial and Commercial | Postal Savings vs. China Construction Bank | Postal Savings vs. Agricultural Bank of | Postal Savings vs. Bank of China |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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