Correlation Between Postal Savings and Shanghai Shuixing
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By analyzing existing cross correlation between Postal Savings Bank and Shanghai Shuixing Home, you can compare the effects of market volatilities on Postal Savings and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shanghai Shuixing.
Diversification Opportunities for Postal Savings and Shanghai Shuixing
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Postal and Shanghai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Postal Savings i.e., Postal Savings and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Postal Savings and Shanghai Shuixing
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.66 times less return on investment than Shanghai Shuixing. But when comparing it to its historical volatility, Postal Savings Bank is 1.39 times less risky than Shanghai Shuixing. It trades about 0.03 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Shanghai Shuixing Home on October 9, 2024 and sell it today you would earn a total of 450.00 from holding Shanghai Shuixing Home or generate 34.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Postal Savings Bank vs. Shanghai Shuixing Home
Performance |
Timeline |
Postal Savings Bank |
Shanghai Shuixing Home |
Postal Savings and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Postal Savings and Shanghai Shuixing
The main advantage of trading using opposite Postal Savings and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.Postal Savings vs. Ye Chiu Metal | Postal Savings vs. Epoxy Base Electronic | Postal Savings vs. Tianshan Aluminum Group | Postal Savings vs. Aluminum Corp of |
Shanghai Shuixing vs. Impulse Qingdao Health | Shanghai Shuixing vs. Goodwill E Health | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. China Life Insurance |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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