Correlation Between DXC Technology and Postal Savings
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Postal Savings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DXC Technology and Postal Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Postal Savings Bank, you can compare the effects of market volatilities on DXC 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 DXC Technology with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Postal Savings.
Diversification Opportunities for DXC Technology and Postal Savings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between DXC and Postal is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co 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 DXC 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and Postal Savings go up and down completely randomly.
Pair Corralation between DXC Technology and Postal Savings
Assuming the 90 days trading horizon DXC Technology Co is expected to under-perform the Postal Savings. But the stock apears to be less risky and, when comparing its historical volatility, DXC Technology Co is 2.76 times less risky than Postal Savings. The stock trades about 0.0 of its potential returns per unit of risk. The Postal Savings Bank is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8.05 in Postal Savings Bank on August 31, 2024 and sell it today you would earn a total of 44.95 from holding Postal Savings Bank or generate 558.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
DXC Technology Co vs. Postal Savings Bank
Performance |
| Timeline |
| DXC Technology |
| Postal Savings Bank |
DXC Technology and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Postal Savings
The main advantage of trading using opposite DXC Technology and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC 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.| DXC Technology vs. INTERSHOP Communications Aktiengesellschaft | DXC Technology vs. Highlight Communications AG | DXC Technology vs. WILLIS LEASE FIN | DXC Technology vs. Verizon Communications |
| Postal Savings vs. ANTA SPORTS PRODUCT | Postal Savings vs. USWE SPORTS AB | Postal Savings vs. PARKEN Sport Entertainment | Postal Savings vs. ADRIATIC METALS LS 013355 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |