Correlation Between Shanghai Material and Postal Savings
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By analyzing existing cross correlation between Shanghai Material Trading and Postal Savings Bank, you can compare the effects of market volatilities on Shanghai Material 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 Shanghai Material with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and Postal Savings.
Diversification Opportunities for Shanghai Material and Postal Savings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Postal is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading 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 Shanghai Material 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 Shanghai Material Trading 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 Shanghai Material i.e., Shanghai Material and Postal Savings go up and down completely randomly.
Pair Corralation between Shanghai Material and Postal Savings
Assuming the 90 days trading horizon Shanghai Material Trading is expected to under-perform the Postal Savings. In addition to that, Shanghai Material is 2.16 times more volatile than Postal Savings Bank. It trades about -0.18 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.02 per unit of volatility. If you would invest 537.00 in Postal Savings Bank on November 1, 2024 and sell it today you would earn a total of 4.00 from holding Postal Savings Bank or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. Postal Savings Bank
Performance |
| Timeline |
| Shanghai Material Trading |
| Postal Savings Bank |
Shanghai Material and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and Postal Savings
The main advantage of trading using opposite Shanghai Material and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material 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.| Shanghai Material vs. Konfoong Materials International | Shanghai Material vs. Youngy Health Co | Shanghai Material vs. Yunnan Jianzhijia Health Chain | Shanghai Material vs. Suzhou Xingye Material |
| Postal Savings vs. Gifore Agricultural Machinery | Postal Savings vs. Shanghai Material Trading | Postal Savings vs. Zhejiang Construction Investment | Postal Savings vs. Ningbo Construction 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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