Correlation Between Shenwu Energy and Postal Savings
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By analyzing existing cross correlation between Shenwu Energy Saving and Postal Savings Bank, you can compare the effects of market volatilities on Shenwu Energy 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 Shenwu Energy with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Postal Savings.
Diversification Opportunities for Shenwu Energy and Postal Savings
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Postal is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving 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 Shenwu Energy 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 Shenwu Energy Saving 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 Shenwu Energy i.e., Shenwu Energy and Postal Savings go up and down completely randomly.
Pair Corralation between Shenwu Energy and Postal Savings
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 1.02 times less return on investment than Postal Savings. In addition to that, Shenwu Energy is 3.0 times more volatile than Postal Savings Bank. It trades about 0.03 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.08 per unit of volatility. If you would invest 429.00 in Postal Savings Bank on September 14, 2024 and sell it today you would earn a total of 125.00 from holding Postal Savings Bank or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Postal Savings Bank
Performance |
| Timeline |
| Shenwu Energy Saving |
| Postal Savings Bank |
Shenwu Energy and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Postal Savings
The main advantage of trading using opposite Shenwu Energy and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy 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.| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Gome Telecom Equipment | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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