Correlation Between Shenzhen Noposion and Postal Savings
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Postal Savings Bank, you can compare the effects of market volatilities on Shenzhen Noposion 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 Noposion with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Postal Savings.
Diversification Opportunities for Shenzhen Noposion and Postal Savings
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Postal is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Noposion 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 Noposion Agrochemicals 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 Noposion i.e., Shenzhen Noposion and Postal Savings go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Postal Savings
Assuming the 90 days trading horizon Shenzhen Noposion is expected to generate 1.34 times less return on investment than Postal Savings. In addition to that, Shenzhen Noposion is 1.9 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 0.06 per unit of volatility. If you would invest 440.00 in Postal Savings Bank on August 29, 2024 and sell it today you would earn a total of 93.00 from holding Postal Savings Bank or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Postal Savings Bank
Performance |
| Timeline |
| Shenzhen Noposion |
| Postal Savings Bank |
Shenzhen Noposion and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Postal Savings
The main advantage of trading using opposite Shenzhen Noposion and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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 Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| Postal Savings vs. Kweichow Moutai Co | Postal Savings vs. Contemporary Amperex Technology | Postal Savings vs. G bits Network Technology | Postal Savings vs. BYD Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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