Correlation Between Postal Savings and Guangzhou Zhujiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Postal Savings Bank and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Postal Savings and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Guangzhou Zhujiang.
Diversification Opportunities for Postal Savings and Guangzhou Zhujiang
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Postal Savings i.e., Postal Savings and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Postal Savings and Guangzhou Zhujiang
Assuming the 90 days trading horizon Postal Savings is expected to generate 3.17 times less return on investment than Guangzhou Zhujiang. But when comparing it to its historical volatility, Postal Savings Bank is 1.43 times less risky than Guangzhou Zhujiang. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 902.00 in Guangzhou Zhujiang Brewery on September 22, 2024 and sell it today you would earn a total of 65.00 from holding Guangzhou Zhujiang Brewery or generate 7.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.65% |
Values | Daily Returns |
Postal Savings Bank vs. Guangzhou Zhujiang Brewery
Performance |
Timeline |
Postal Savings Bank |
Guangzhou Zhujiang |
Postal Savings and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Postal Savings and Guangzhou Zhujiang
The main advantage of trading using opposite Postal Savings and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.Postal Savings vs. Shanghai Jinfeng Wine | Postal Savings vs. HaiXin Foods Co | Postal Savings vs. Shanghai Ziyan Foods | Postal Savings vs. Liuzhou Chemical Industry |
Guangzhou Zhujiang vs. BYD Co Ltd | Guangzhou Zhujiang vs. China Mobile Limited | Guangzhou Zhujiang vs. Agricultural Bank of | Guangzhou Zhujiang vs. Industrial and Commercial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Transaction History View history of all your transactions and understand their impact on performance |