Correlation Between Wuhan Xianglong and Postal Savings
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By analyzing existing cross correlation between Wuhan Xianglong Power and Postal Savings Bank, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Postal Savings.
Diversification Opportunities for Wuhan Xianglong and Postal Savings
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Postal is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power 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 Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Postal Savings go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Postal Savings
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 2.14 times more return on investment than Postal Savings. However, Wuhan Xianglong is 2.14 times more volatile than Postal Savings Bank. It trades about 0.04 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.03 per unit of risk. If you would invest 858.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 370.00 from holding Wuhan Xianglong Power or generate 43.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Postal Savings Bank
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Postal Savings Bank |
Wuhan Xianglong and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Postal Savings
The main advantage of trading using opposite Wuhan Xianglong and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| Postal Savings vs. Chongqing Road Bridge | Postal Savings vs. Wuhan Xianglong Power | Postal Savings vs. Empyrean Technology Co | Postal Savings vs. Yuanjie Semiconductor Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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