Correlation Between Agricultural Bank and Postal Savings
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By analyzing existing cross correlation between Agricultural Bank of and Postal Savings Bank, you can compare the effects of market volatilities on Agricultural Bank 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 Agricultural Bank with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Postal Savings.
Diversification Opportunities for Agricultural Bank and Postal Savings
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agricultural and Postal is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of 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 Agricultural Bank 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 Agricultural Bank of 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 Agricultural Bank i.e., Agricultural Bank and Postal Savings go up and down completely randomly.
Pair Corralation between Agricultural Bank and Postal Savings
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.8 times more return on investment than Postal Savings. However, Agricultural Bank of is 1.26 times less risky than Postal Savings. It trades about -0.03 of its potential returns per unit of risk. Postal Savings Bank is currently generating about -0.13 per unit of risk. If you would invest 476.00 in Agricultural Bank of on August 28, 2024 and sell it today you would lose (3.00) from holding Agricultural Bank of or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Postal Savings Bank
Performance |
| Timeline |
| Agricultural Bank |
| Postal Savings Bank |
Agricultural Bank and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Postal Savings
The main advantage of trading using opposite Agricultural Bank and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank 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.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Ping An Insurance | Agricultural Bank vs. China Mobile Limited |
| Postal Savings vs. China Life Insurance | Postal Savings vs. Piotech Inc A | Postal Savings vs. Dongxing Sec Co | Postal Savings vs. Shanghai OPM Biosciences |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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