Correlation Between Shandong Iron and Postal Savings
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By analyzing existing cross correlation between Shandong Iron and and Postal Savings Bank, you can compare the effects of market volatilities on Shandong Iron 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 Iron with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and Postal Savings.
Diversification Opportunities for Shandong Iron and Postal Savings
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Postal is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and 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 Iron 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 Iron and 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 Iron i.e., Shandong Iron and Postal Savings go up and down completely randomly.
Pair Corralation between Shandong Iron and Postal Savings
Assuming the 90 days trading horizon Shandong Iron and is expected to under-perform the Postal Savings. In addition to that, Shandong Iron is 1.0 times more volatile than Postal Savings Bank. It trades about -0.55 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.13 per unit of volatility. If you would invest 550.00 in Postal Savings Bank on October 16, 2024 and sell it today you would lose (26.00) from holding Postal Savings Bank or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Iron and vs. Postal Savings Bank
Performance |
| Timeline |
| Shandong Iron |
| Postal Savings Bank |
Shandong Iron and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and Postal Savings
The main advantage of trading using opposite Shandong Iron and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron 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.| Shandong Iron vs. CIMC Vehicles Co | Shandong Iron vs. Changchun Engley Automobile | Shandong Iron vs. Shenzhen Centralcon Investment | Shandong Iron vs. Shanghai CEO Environmental |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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