Correlation Between Kuangda Technology and Postal Savings
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By analyzing existing cross correlation between Kuangda Technology Group and Postal Savings Bank, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Postal Savings.
Diversification Opportunities for Kuangda Technology and Postal Savings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuangda and Postal is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group 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 Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and Postal Savings go up and down completely randomly.
Pair Corralation between Kuangda Technology and Postal Savings
Assuming the 90 days trading horizon Kuangda Technology is expected to generate 2.38 times less return on investment than Postal Savings. In addition to that, Kuangda Technology is 1.51 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 465.00 in Postal Savings Bank on October 11, 2024 and sell it today you would earn a total of 80.00 from holding Postal Savings Bank or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Postal Savings Bank
Performance |
| Timeline |
| Kuangda Technology |
| Postal Savings Bank |
Kuangda Technology and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Postal Savings
The main advantage of trading using opposite Kuangda Technology and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.| Kuangda Technology vs. Xinke Material | Kuangda Technology vs. Sanxiang Advanced Materials | Kuangda Technology vs. Malion New Materials | Kuangda Technology vs. Hunan TV Broadcast |
| Postal Savings vs. Jiajia Food Group | Postal Savings vs. Tianshui Huatian Technology | Postal Savings vs. Kuangda Technology Group | Postal Savings vs. Offshore Oil Engineering |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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