Correlation Between Tieling Newcity and Postal Savings
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By analyzing existing cross correlation between Tieling Newcity Investment and Postal Savings Bank, you can compare the effects of market volatilities on Tieling Newcity 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 Tieling Newcity with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Postal Savings.
Diversification Opportunities for Tieling Newcity and Postal Savings
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and Postal is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity 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 Tieling Newcity 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 Tieling Newcity 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 Tieling Newcity i.e., Tieling Newcity and Postal Savings go up and down completely randomly.
Pair Corralation between Tieling Newcity and Postal Savings
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Postal Savings. In addition to that, Tieling Newcity is 1.74 times more volatile than Postal Savings Bank. It trades about 0.0 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 434.00 in Postal Savings Bank on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Postal Savings Bank or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Postal Savings Bank
Performance |
| Timeline |
| Tieling Newcity Inve |
| Postal Savings Bank |
Tieling Newcity and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Postal Savings
The main advantage of trading using opposite Tieling Newcity and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity 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.| Tieling Newcity vs. China World Trade | Tieling Newcity vs. FSPG Hi Tech Co | Tieling Newcity vs. Jiangxi Hengda Hi Tech | Tieling Newcity vs. Xinjiang Communications Construction |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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