Correlation Between Hubei Xingfa and Postal Savings
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Postal Savings Bank, you can compare the effects of market volatilities on Hubei Xingfa 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 Hubei Xingfa with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Postal Savings.
Diversification Opportunities for Hubei Xingfa and Postal Savings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubei and Postal is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals 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 Hubei Xingfa 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 Hubei Xingfa Chemicals 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 Hubei Xingfa i.e., Hubei Xingfa and Postal Savings go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Postal Savings
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the Postal Savings. In addition to that, Hubei Xingfa is 1.33 times more volatile than Postal Savings Bank. It trades about -0.05 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.05 per unit of volatility. If you would invest 564.00 in Postal Savings Bank on October 14, 2024 and sell it today you would lose (31.00) from holding Postal Savings Bank or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Postal Savings Bank
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Postal Savings Bank |
Hubei Xingfa and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Postal Savings
The main advantage of trading using opposite Hubei Xingfa and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa 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.| Hubei Xingfa vs. Ningbo Tip Rubber | Hubei Xingfa vs. Hainan Airlines Co | Hubei Xingfa vs. Jiangnan Mould Plastic | Hubei Xingfa vs. Jilin OLED Material |
| Postal Savings vs. Thinkingdom Media Group | Postal Savings vs. Shenzhen Noposion Agrochemicals | Postal Savings vs. Hubei Xingfa Chemicals | Postal Savings vs. Guangzhou Jinyi Media |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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