Correlation Between Inner Mongolia and Postal Savings
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By analyzing existing cross correlation between Inner Mongolia Dazhong and Postal Savings Bank, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Postal Savings.
Diversification Opportunities for Inner Mongolia and Postal Savings
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inner and Postal is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Dazhong 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 Inner Mongolia 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 Inner Mongolia Dazhong 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 Inner Mongolia i.e., Inner Mongolia and Postal Savings go up and down completely randomly.
Pair Corralation between Inner Mongolia and Postal Savings
Assuming the 90 days trading horizon Inner Mongolia Dazhong is expected to under-perform the Postal Savings. In addition to that, Inner Mongolia is 1.5 times more volatile than Postal Savings Bank. It trades about -0.02 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.07 per unit of volatility. If you would invest 481.00 in Postal Savings Bank on October 7, 2024 and sell it today you would earn a total of 68.00 from holding Postal Savings Bank or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia Dazhong vs. Postal Savings Bank
Performance |
| Timeline |
| Inner Mongolia Dazhong |
| Postal Savings Bank |
Inner Mongolia and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Postal Savings
The main advantage of trading using opposite Inner Mongolia and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Xinhua Winshare Publishing | Inner Mongolia vs. Jiangsu Phoenix Publishing | Inner Mongolia vs. Miracll Chemicals Co | Inner Mongolia vs. Shandong Longquan Pipeline |
| Postal Savings vs. Gansu Jiu Steel | Postal Savings vs. Aba Chemicals Corp | Postal Savings vs. Yes Optoelectronics Co | Postal Savings vs. Queclink Wireless Solutions |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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