Correlation Between Postal Savings and Ningxia Younglight
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By analyzing existing cross correlation between Postal Savings Bank and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Postal Savings and Ningxia Younglight 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 Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Ningxia Younglight.
Diversification Opportunities for Postal Savings and Ningxia Younglight
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and Ningxia is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight 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 Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Postal Savings i.e., Postal Savings and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Postal Savings and Ningxia Younglight
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.5 times more return on investment than Ningxia Younglight. However, Postal Savings Bank is 2.0 times less risky than Ningxia Younglight. It trades about 0.03 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about 0.0 per unit of risk. If you would invest 465.00 in Postal Savings Bank on October 11, 2024 and sell it today you would earn a total of 80.00 from holding Postal Savings Bank or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Postal Savings Bank |
| Ningxia Younglight |
Postal Savings and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Ningxia Younglight
The main advantage of trading using opposite Postal Savings and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's 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 |
| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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