Correlation Between Postal Savings and H M
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By analyzing existing cross correlation between Postal Savings Bank and H M Hennes, you can compare the effects of market volatilities on Postal Savings and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and H M.
Diversification Opportunities for Postal Savings and H M
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Postal and HMSB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Postal Savings i.e., Postal Savings and H M go up and down completely randomly.
Pair Corralation between Postal Savings and H M
Assuming the 90 days horizon Postal Savings is expected to generate 2.68 times less return on investment than H M. But when comparing it to its historical volatility, Postal Savings Bank is 1.47 times less risky than H M. It trades about 0.05 of its potential returns per unit of risk. H M Hennes is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,183 in H M Hennes on August 28, 2024 and sell it today you would earn a total of 139.00 from holding H M Hennes or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. H M Hennes
Performance |
| Timeline |
| Postal Savings Bank |
| H M Hennes |
Postal Savings and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and H M
The main advantage of trading using opposite Postal Savings and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| Postal Savings vs. Deutsche Bank Aktiengesellschaft | Postal Savings vs. Superior Plus Corp | Postal Savings vs. NMI Holdings | Postal Savings vs. Origin Agritech |
| H M vs. NorAm Drilling AS | H M vs. Postal Savings Bank | H M vs. PennantPark Investment | H M vs. Geely Automobile Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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