Correlation Between Postal Savings and Beijing Mainstreets
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By analyzing existing cross correlation between Postal Savings Bank and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Postal Savings and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Beijing Mainstreets.
Diversification Opportunities for Postal Savings and Beijing Mainstreets
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Postal and Beijing is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Postal Savings i.e., Postal Savings and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Postal Savings and Beijing Mainstreets
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 2.23 times less risky than Beijing Mainstreets. The stock trades about -0.04 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Beijing Mainstreets Investment on October 12, 2024 and sell it today you would lose (2.00) from holding Beijing Mainstreets Investment or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Postal Savings Bank |
| Beijing Mainstreets |
Postal Savings and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Beijing Mainstreets
The main advantage of trading using opposite Postal Savings and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Postal Savings vs. Industrial and Commercial | Postal Savings vs. China Construction Bank | Postal Savings vs. Agricultural Bank of | Postal Savings vs. Bank of China |
| Beijing Mainstreets vs. Maoming Petro Chemical Shihua | Beijing Mainstreets vs. Dhc Software Co | Beijing Mainstreets vs. Sharetronic Data Technology | Beijing Mainstreets vs. HUAQIN TECHNOLOGY LTD |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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