Correlation Between HeNan Splendor and Postal Savings
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By analyzing existing cross correlation between HeNan Splendor Science and Postal Savings Bank, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Postal Savings.
Diversification Opportunities for HeNan Splendor and Postal Savings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HeNan and Postal is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Postal Savings go up and down completely randomly.
Pair Corralation between HeNan Splendor and Postal Savings
Assuming the 90 days trading horizon HeNan Splendor Science is expected to under-perform the Postal Savings. In addition to that, HeNan Splendor is 2.09 times more volatile than Postal Savings Bank. It trades about -0.16 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.12 per unit of volatility. If you would invest 550.00 in Postal Savings Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Postal Savings Bank or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Postal Savings Bank
Performance |
| Timeline |
| HeNan Splendor Science |
| Postal Savings Bank |
HeNan Splendor and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Postal Savings
The main advantage of trading using opposite HeNan Splendor and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Beijing Kaiwen Education | HeNan Splendor vs. Sinocat Environmental Technology | HeNan Splendor vs. Guangdong Liantai Environmental | HeNan Splendor vs. Penyao Environmental Protection |
| Postal Savings vs. Citic Guoan Wine | Postal Savings vs. Tinavi Medical Technologies | Postal Savings vs. Dymatic Chemicals | Postal Savings vs. Shenzhen Noposion Agrochemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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