Correlation Between Postal Savings and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Postal Savings and CHINA TONTINE 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 Postal Savings and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and CHINA TONTINE WINES, you can compare the effects of market volatilities on Postal Savings and CHINA TONTINE 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 Postal Savings with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and CHINA TONTINE.
Diversification Opportunities for Postal Savings and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Postal and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and Postal Savings 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 Postal Savings Bank are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Postal Savings i.e., Postal Savings and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Postal Savings and CHINA TONTINE
If you would invest 53.00 in Postal Savings Bank on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Postal Savings Bank or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Postal Savings Bank |
| CHINA TONTINE WINES |
Postal Savings and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and CHINA TONTINE
The main advantage of trading using opposite Postal Savings and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Postal Savings vs. POSBO UNSPADRS20YC1 | Postal Savings vs. UTD OV BK LOC ADR1 | Postal Savings vs. Superior Plus Corp | Postal Savings vs. SIVERS SEMICONDUCTORS AB |
| CHINA TONTINE vs. REINET INVESTMENTS SCA | CHINA TONTINE vs. SLR Investment Corp | CHINA TONTINE vs. Benchmark Electronics | CHINA TONTINE vs. Postal Savings Bank |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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