Correlation Between Postal Savings and Maoming Petro
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By analyzing existing cross correlation between Postal Savings Bank and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Postal Savings and Maoming Petro 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 Postal Savings with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Maoming Petro.
Diversification Opportunities for Postal Savings and Maoming Petro
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postal and Maoming is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Postal Savings 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 Postal Savings Bank are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Postal Savings i.e., Postal Savings and Maoming Petro go up and down completely randomly.
Pair Corralation between Postal Savings and Maoming Petro
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.55 times more return on investment than Maoming Petro. However, Postal Savings Bank is 1.81 times less risky than Maoming Petro. It trades about 0.26 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.03 per unit of risk. If you would invest 524.00 in Postal Savings Bank on September 26, 2024 and sell it today you would earn a total of 39.00 from holding Postal Savings Bank or generate 7.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Postal Savings Bank vs. Maoming Petro Chemical Shihua
Performance |
Timeline |
Postal Savings Bank |
Maoming Petro Chemical |
Postal Savings and Maoming Petro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Postal Savings and Maoming Petro
The main advantage of trading using opposite Postal Savings and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.Postal Savings vs. BYD Co Ltd | Postal Savings vs. China Mobile Limited | Postal Savings vs. Agricultural Bank of | Postal Savings vs. Industrial and Commercial |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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