Correlation Between Citic Guoan and Postal Savings
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By analyzing existing cross correlation between Citic Guoan Wine and Postal Savings Bank, you can compare the effects of market volatilities on Citic Guoan 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 Citic Guoan with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Postal Savings.
Diversification Opportunities for Citic Guoan and Postal Savings
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citic and Postal is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine 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 Citic Guoan 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 Citic Guoan Wine 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 Citic Guoan i.e., Citic Guoan and Postal Savings go up and down completely randomly.
Pair Corralation between Citic Guoan and Postal Savings
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Postal Savings. In addition to that, Citic Guoan is 1.82 times more volatile than Postal Savings Bank. It trades about -0.3 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.12 per unit of volatility. If you would invest 550.00 in Postal Savings Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Postal Savings Bank or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Postal Savings Bank
Performance |
| Timeline |
| Citic Guoan Wine |
| Postal Savings Bank |
Citic Guoan and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Postal Savings
The main advantage of trading using opposite Citic Guoan and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan 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.| Citic Guoan vs. Guangzhou Haige Communications | Citic Guoan vs. Shandong Polymer Biochemicals | Citic Guoan vs. Ningbo Fangzheng Automobile | Citic Guoan vs. Fibocom Wireless |
| Postal Savings vs. Citic Guoan Wine | Postal Savings vs. Tinavi Medical Technologies | Postal Savings vs. Dymatic Chemicals | Postal Savings vs. Shenzhen Noposion Agrochemicals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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