Correlation Between Jiangsu Financial and Postal Savings
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Postal Savings Bank, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Postal Savings.
Diversification Opportunities for Jiangsu Financial and Postal Savings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Postal is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Postal Savings go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Postal Savings
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.31 times less return on investment than Postal Savings. In addition to that, Jiangsu Financial is 1.18 times more volatile than Postal Savings Bank. It trades about 0.03 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.04 per unit of volatility. If you would invest 480.00 in Postal Savings Bank on November 7, 2024 and sell it today you would earn a total of 61.00 from holding Postal Savings Bank or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Postal Savings Bank
Performance |
| Timeline |
| Jiangsu Financial Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Postal Savings Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Jiangsu Financial and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Postal Savings
The main advantage of trading using opposite Jiangsu Financial and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.The idea behind Jiangsu Financial Leasing and Postal Savings Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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