Correlation Between Postal Savings and China Union
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By analyzing existing cross correlation between Postal Savings Bank and China Union Holdings, you can compare the effects of market volatilities on Postal Savings and China Union 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 Postal Savings with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and China Union.
Diversification Opportunities for Postal Savings and China Union
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Postal and China is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and Postal Savings 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 Postal Savings Bank are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Postal Savings i.e., Postal Savings and China Union go up and down completely randomly.
Pair Corralation between Postal Savings and China Union
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.9 times more return on investment than China Union. However, Postal Savings Bank is 1.11 times less risky than China Union. It trades about -0.09 of its potential returns per unit of risk. China Union Holdings is currently generating about -0.67 per unit of risk. If you would invest 550.00 in Postal Savings Bank on October 15, 2024 and sell it today you would lose (17.00) from holding Postal Savings Bank or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. China Union Holdings
Performance |
| Timeline |
| Postal Savings Bank |
| China Union Holdings |
Postal Savings and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and China Union
The main advantage of trading using opposite Postal Savings and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| Postal Savings vs. Thinkingdom Media Group | Postal Savings vs. Shenzhen Noposion Agrochemicals | Postal Savings vs. Hubei Xingfa Chemicals | Postal Savings vs. Guangzhou Jinyi Media |
| China Union vs. Hua Xia Bank | China Union vs. Postal Savings Bank | China Union vs. Unisplendour Corp | China Union vs. Bomesc Offshore 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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