Correlation Between Shandong Sanyuan and Postal Savings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Postal Savings Bank, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Postal Savings.
Diversification Opportunities for Shandong Sanyuan and Postal Savings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Postal is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology 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 Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Postal Savings go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Postal Savings
Assuming the 90 days trading horizon Shandong Sanyuan is expected to generate 1.01 times less return on investment than Postal Savings. In addition to that, Shandong Sanyuan is 1.61 times more volatile than Postal Savings Bank. It trades about 0.03 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.04 per unit of volatility. If you would invest 480.00 in Postal Savings Bank on November 7, 2024 and sell it today you would earn a total of 61.00 from holding Postal Savings Bank or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Postal Savings Bank
Performance |
| Timeline |
| Shandong Sanyuan Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Postal Savings Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Shandong Sanyuan and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Postal Savings
The main advantage of trading using opposite Shandong Sanyuan and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.The idea behind Shandong Sanyuan Biotechnology and Postal Savings Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings 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 |