Correlation Between Aluminum Corp and Postal Savings
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By analyzing existing cross correlation between Aluminum Corp of and Postal Savings Bank, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Postal Savings.
Diversification Opportunities for Aluminum Corp and Postal Savings
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aluminum and Postal is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp 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 Aluminum Corp 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 Aluminum Corp 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 Aluminum Corp i.e., Aluminum Corp and Postal Savings go up and down completely randomly.
Pair Corralation between Aluminum Corp and Postal Savings
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Postal Savings. In addition to that, Aluminum Corp is 1.08 times more volatile than Postal Savings Bank. It trades about -0.17 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.03 per unit of volatility. If you would invest 555.00 in Postal Savings Bank on October 10, 2024 and sell it today you would earn a total of 4.00 from holding Postal Savings Bank or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Postal Savings Bank
Performance |
| Timeline |
| Aluminum Corp |
| Postal Savings Bank |
Aluminum Corp and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Postal Savings
The main advantage of trading using opposite Aluminum Corp and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Chinese Universe Publishing | Aluminum Corp vs. Duzhe Publishing Media | Aluminum Corp vs. Sichuan Fulin Transportation | Aluminum Corp vs. Hubeiyichang Transportation Group |
| Postal Savings vs. Jiajia Food Group | Postal Savings vs. Tianshui Huatian Technology | Postal Savings vs. Kuangda Technology Group | Postal Savings vs. Offshore Oil Engineering |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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