Correlation Between Chongqing Brewery and Postal Savings
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By analyzing existing cross correlation between Chongqing Brewery Co and Postal Savings Bank, you can compare the effects of market volatilities on Chongqing Brewery 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 Chongqing Brewery with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Postal Savings.
Diversification Opportunities for Chongqing Brewery and Postal Savings
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chongqing and Postal is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co 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 Chongqing Brewery 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 Chongqing Brewery Co 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 Chongqing Brewery i.e., Chongqing Brewery and Postal Savings go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Postal Savings
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Postal Savings. In addition to that, Chongqing Brewery is 1.45 times more volatile than Postal Savings Bank. It trades about -0.06 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.03 per unit of volatility. If you would invest 460.00 in Postal Savings Bank on October 13, 2024 and sell it today you would earn a total of 73.00 from holding Postal Savings Bank or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Postal Savings Bank
Performance |
| Timeline |
| Chongqing Brewery |
| Postal Savings Bank |
Chongqing Brewery and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Postal Savings
The main advantage of trading using opposite Chongqing Brewery and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery 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.| Chongqing Brewery vs. Hunan Tyen Machinery | Chongqing Brewery vs. Anhui Huilong Agricultural | Chongqing Brewery vs. China Eastern Airlines | Chongqing Brewery vs. Shenzhen Zhongzhuang Construction |
| Postal Savings vs. Great Sun Foods Co | Postal Savings vs. Juewei Food Co | Postal Savings vs. Tianshui Huatian Technology | Postal Savings vs. Chongqing Brewery Co |
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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