Correlation Between Bank of Suzhou and Postal Savings
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By analyzing existing cross correlation between Bank of Suzhou and Postal Savings Bank, you can compare the effects of market volatilities on Bank of Suzhou 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 Bank of Suzhou with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Postal Savings.
Diversification Opportunities for Bank of Suzhou and Postal Savings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Postal is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou 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 Bank of Suzhou 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 Bank of Suzhou 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 Bank of Suzhou i.e., Bank of Suzhou and Postal Savings go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Postal Savings
Assuming the 90 days trading horizon Bank of Suzhou is expected to under-perform the Postal Savings. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Suzhou is 1.15 times less risky than Postal Savings. The stock trades about -0.2 of its potential returns per unit of risk. The Postal Savings Bank is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 528.00 in Postal Savings Bank on December 4, 2024 and sell it today you would lose (2.00) from holding Postal Savings Bank or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Postal Savings Bank
Performance |
| Timeline |
| Bank of Suzhou |
| Postal Savings Bank |
Bank of Suzhou and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Postal Savings
The main advantage of trading using opposite Bank of Suzhou and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou 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.| Bank of Suzhou vs. Suofeiya Home Collection | Bank of Suzhou vs. Shenzhen AV Display Co | Bank of Suzhou vs. China Sports Industry | Bank of Suzhou vs. Nanxing Furniture Machinery |
| Postal Savings vs. Huaibei Mining Holdings | Postal Savings vs. Beijing Seeyon Internet | Postal Savings vs. Queclink Wireless Solutions | Postal Savings vs. XinJiang GuoTong Pipeline |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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