Correlation Between Postal Savings and Hunan TV
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By analyzing existing cross correlation between Postal Savings Bank and Hunan TV Broadcast, you can compare the effects of market volatilities on Postal Savings and Hunan TV 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 Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Hunan TV.
Diversification Opportunities for Postal Savings and Hunan TV
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postal and Hunan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Hunan TV Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan TV Broadcast 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 Hunan TV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan TV Broadcast has no effect on the direction of Postal Savings i.e., Postal Savings and Hunan TV go up and down completely randomly.
Pair Corralation between Postal Savings and Hunan TV
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.24 times more return on investment than Hunan TV. However, Postal Savings Bank is 4.19 times less risky than Hunan TV. It trades about 0.08 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about -0.18 per unit of risk. If you would invest 521.00 in Postal Savings Bank on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Postal Savings Bank or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Hunan TV Broadcast
Performance |
| Timeline |
| Postal Savings Bank |
| Hunan TV Broadcast |
Postal Savings and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Hunan TV
The main advantage of trading using opposite Postal Savings and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Hunan TV 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 Hunan TV will offset losses from the drop in Hunan TV's long position.| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Bus Online Co | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
| Hunan TV vs. Ming Yang Smart | Hunan TV vs. 159681 | Hunan TV vs. 159005 | Hunan TV vs. Loctek Ergonomic Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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