Correlation Between Postal Savings and Aerospace
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By analyzing existing cross correlation between Postal Savings Bank and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Postal Savings and Aerospace 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 Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Aerospace.
Diversification Opportunities for Postal Savings and Aerospace
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and Aerospace is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Postal Savings i.e., Postal Savings and Aerospace go up and down completely randomly.
Pair Corralation between Postal Savings and Aerospace
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.69 times more return on investment than Aerospace. However, Postal Savings Bank is 1.44 times less risky than Aerospace. It trades about 0.01 of its potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about -0.43 per unit of risk. If you would invest 555.00 in Postal Savings Bank on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Postal Savings Bank or generate 0.0% 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. Aerospace Hi Tech Holding
Performance |
| Timeline |
| Postal Savings Bank |
| Aerospace Hi Tech |
Postal Savings and Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Aerospace
The main advantage of trading using opposite Postal Savings and Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Aerospace 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 Aerospace will offset losses from the drop in Aerospace'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 |
| Aerospace vs. Guocheng Mining Co | Aerospace vs. Dawning Information Industry | Aerospace vs. Shanghai Yanpu Metal | Aerospace vs. Guangzhou Ruoyuchen Information |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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