Correlation Between Shenzhen Centralcon and Postal Savings
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Postal Savings Bank, you can compare the effects of market volatilities on Shenzhen Centralcon 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 Shenzhen Centralcon with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Postal Savings.
Diversification Opportunities for Shenzhen Centralcon and Postal Savings
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Postal is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment 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 Shenzhen Centralcon 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 Shenzhen Centralcon Investment 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 Shenzhen Centralcon i.e., Shenzhen Centralcon and Postal Savings go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Postal Savings
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Postal Savings. In addition to that, Shenzhen Centralcon is 1.99 times more volatile than Postal Savings Bank. It trades about -0.01 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.03 per unit of volatility. If you would invest 461.00 in Postal Savings Bank on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Postal Savings Bank or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Postal Savings Bank
Performance |
| Timeline |
| Shenzhen Centralcon |
| Postal Savings Bank |
Shenzhen Centralcon and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Postal Savings
The main advantage of trading using opposite Shenzhen Centralcon and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon 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.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Postal Savings vs. Chongqing Road Bridge | Postal Savings vs. Wuhan Xianglong Power | Postal Savings vs. Empyrean Technology Co | Postal Savings vs. Yuanjie Semiconductor Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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