Correlation Between Hangzhou Guotai and Postal Savings
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Postal Savings Bank, you can compare the effects of market volatilities on Hangzhou Guotai 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 Hangzhou Guotai with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Postal Savings.
Diversification Opportunities for Hangzhou Guotai and Postal Savings
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hangzhou and Postal is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental 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 Hangzhou Guotai 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 Hangzhou Guotai Environmental 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 Hangzhou Guotai i.e., Hangzhou Guotai and Postal Savings go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Postal Savings
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 1.53 times more return on investment than Postal Savings. However, Hangzhou Guotai is 1.53 times more volatile than Postal Savings Bank. It trades about 0.12 of its potential returns per unit of risk. Postal Savings Bank is currently generating about -0.13 per unit of risk. If you would invest 3,117 in Hangzhou Guotai Environmental on October 16, 2024 and sell it today you would earn a total of 179.00 from holding Hangzhou Guotai Environmental or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Postal Savings Bank
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Postal Savings Bank |
Hangzhou Guotai and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Postal Savings
The main advantage of trading using opposite Hangzhou Guotai and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai 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.| Hangzhou Guotai vs. Shenzhen MYS Environmental | Hangzhou Guotai vs. Meinian Onehealth Healthcare | Hangzhou Guotai vs. Guangdong Liantai Environmental | Hangzhou Guotai vs. Huaxia Eye Hospital |
| Postal Savings vs. Hangzhou Guotai Environmental | Postal Savings vs. Anyang Iron Steel | Postal Savings vs. Eit Environmental Development | Postal Savings vs. Shandong Iron and |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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