Correlation Between Postal Savings and Weichai Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Postal Savings Bank and Weichai Heavy Machinery, you can compare the effects of market volatilities on Postal Savings and Weichai Heavy 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 Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Weichai Heavy.
Diversification Opportunities for Postal Savings and Weichai Heavy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Postal and Weichai is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery 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 Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Postal Savings i.e., Postal Savings and Weichai Heavy go up and down completely randomly.
Pair Corralation between Postal Savings and Weichai Heavy
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Weichai Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 3.29 times less risky than Weichai Heavy. The stock trades about -0.03 of its potential returns per unit of risk. The Weichai Heavy Machinery is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,216 in Weichai Heavy Machinery on October 14, 2024 and sell it today you would earn a total of 644.00 from holding Weichai Heavy Machinery or generate 52.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Weichai Heavy Machinery
Performance |
| Timeline |
| Postal Savings Bank |
| Weichai Heavy Machinery |
Postal Savings and Weichai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Weichai Heavy
The main advantage of trading using opposite Postal Savings and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy'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 |
| Weichai Heavy vs. Hangzhou Guotai Environmental | Weichai Heavy vs. Tongyu Communication | Weichai Heavy vs. Beijing Kingsoft Office | Weichai Heavy vs. Porton Fine Chemicals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |