Correlation Between Aba Chemicals and Postal Savings
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By analyzing existing cross correlation between Aba Chemicals Corp and Postal Savings Bank, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Postal Savings.
Diversification Opportunities for Aba Chemicals and Postal Savings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aba and Postal is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp 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 Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Postal Savings go up and down completely randomly.
Pair Corralation between Aba Chemicals and Postal Savings
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Postal Savings. In addition to that, Aba Chemicals is 1.49 times more volatile than Postal Savings Bank. It trades about -0.19 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.22 per unit of volatility. If you would invest 559.00 in Postal Savings Bank on October 23, 2024 and sell it today you would lose (37.00) from holding Postal Savings Bank or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Postal Savings Bank
Performance |
| Timeline |
| Aba Chemicals Corp |
| Postal Savings Bank |
Aba Chemicals and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Postal Savings
The main advantage of trading using opposite Aba Chemicals and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Guangzhou Haozhi Industrial | Aba Chemicals vs. Youyou Foods Co | Aba Chemicals vs. Chengtun Mining Group | Aba Chemicals vs. Xiamen Jihong Package |
| Postal Savings vs. Jiangsu Yueda Investment | Postal Savings vs. Keda Clean Energy | Postal Savings vs. Kuang Chi Technologies | Postal Savings vs. Tianshui Huatian 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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