Correlation Between Postal Savings and Caitong Securities
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By analyzing existing cross correlation between Postal Savings Bank and Caitong Securities Co, you can compare the effects of market volatilities on Postal Savings and Caitong Securities 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 Caitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Caitong Securities.
Diversification Opportunities for Postal Savings and Caitong Securities
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Caitong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Caitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caitong Securities 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 Caitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caitong Securities has no effect on the direction of Postal Savings i.e., Postal Savings and Caitong Securities go up and down completely randomly.
Pair Corralation between Postal Savings and Caitong Securities
Assuming the 90 days trading horizon Postal Savings is expected to generate 2.65 times less return on investment than Caitong Securities. But when comparing it to its historical volatility, Postal Savings Bank is 1.99 times less risky than Caitong Securities. It trades about 0.01 of its potential returns per unit of risk. Caitong Securities Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 793.00 in Caitong Securities Co on December 10, 2024 and sell it today you would earn a total of 3.00 from holding Caitong Securities Co or generate 0.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Postal Savings Bank vs. Caitong Securities Co
Performance |
Timeline |
Postal Savings Bank |
Caitong Securities |
Postal Savings and Caitong Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Postal Savings and Caitong Securities
The main advantage of trading using opposite Postal Savings and Caitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Caitong Securities 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 Caitong Securities will offset losses from the drop in Caitong Securities' long position.Postal Savings vs. Luyin Investment Group | Postal Savings vs. Harbin Hatou Investment | Postal Savings vs. Andon Health Co | Postal Savings vs. PKU HealthCare Corp |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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