Correlation Between Shanghai Pudong and Postal Savings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Pudong Development and Postal Savings Bank, you can compare the effects of market volatilities on Shanghai Pudong 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 Shanghai Pudong with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Postal Savings.
Diversification Opportunities for Shanghai Pudong and Postal Savings
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Postal is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development 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 Shanghai Pudong 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 Shanghai Pudong Development 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 Shanghai Pudong i.e., Shanghai Pudong and Postal Savings go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Postal Savings
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 1.01 times more return on investment than Postal Savings. However, Shanghai Pudong is 1.01 times more volatile than Postal Savings Bank. It trades about 0.08 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.08 per unit of risk. If you would invest 855.00 in Shanghai Pudong Development on August 29, 2024 and sell it today you would earn a total of 76.00 from holding Shanghai Pudong Development or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Postal Savings Bank
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Postal Savings Bank |
Shanghai Pudong and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Postal Savings
The main advantage of trading using opposite Shanghai Pudong and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong 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.| Shanghai Pudong vs. Hang Xiao Steel | Shanghai Pudong vs. Gansu Jiu Steel | Shanghai Pudong vs. Tianjin Capital Environmental | Shanghai Pudong vs. Eit Environmental Development |
| Postal Savings vs. Kweichow Moutai Co | Postal Savings vs. Contemporary Amperex Technology | Postal Savings vs. G bits Network Technology | Postal Savings vs. BYD Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |