Correlation Between Jiangsu Changfa and Postal Savings
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By analyzing existing cross correlation between Jiangsu Changfa Refrigeration and Postal Savings Bank, you can compare the effects of market volatilities on Jiangsu Changfa 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 Jiangsu Changfa with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Changfa and Postal Savings.
Diversification Opportunities for Jiangsu Changfa and Postal Savings
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Postal is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Changfa Refrigeration 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 Jiangsu Changfa 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 Jiangsu Changfa Refrigeration 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 Jiangsu Changfa i.e., Jiangsu Changfa and Postal Savings go up and down completely randomly.
Pair Corralation between Jiangsu Changfa and Postal Savings
Assuming the 90 days trading horizon Jiangsu Changfa is expected to generate 1.3 times less return on investment than Postal Savings. In addition to that, Jiangsu Changfa is 1.81 times more volatile than Postal Savings Bank. It trades about 0.01 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Changfa Refrigeration vs. Postal Savings Bank
Performance |
| Timeline |
| Jiangsu Changfa Refr |
| Postal Savings Bank |
Jiangsu Changfa and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Changfa and Postal Savings
The main advantage of trading using opposite Jiangsu Changfa and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Changfa 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.| Jiangsu Changfa vs. Guangzhou Haige Communications | Jiangsu Changfa vs. Shaanxi Meineng Clean | Jiangsu Changfa vs. State Grid InformationCommunication | Jiangsu Changfa vs. Tianjin Hi Tech Development |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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