Correlation Between Postal Savings and Advanced Technology
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By analyzing existing cross correlation between Postal Savings Bank and Advanced Technology Materials, you can compare the effects of market volatilities on Postal Savings and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Advanced Technology.
Diversification Opportunities for Postal Savings and Advanced Technology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Postal and Advanced is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Postal Savings i.e., Postal Savings and Advanced Technology go up and down completely randomly.
Pair Corralation between Postal Savings and Advanced Technology
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.8 times less return on investment than Advanced Technology. But when comparing it to its historical volatility, Postal Savings Bank is 1.5 times less risky than Advanced Technology. It trades about 0.03 of its potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 865.00 in Advanced Technology Materials on October 27, 2024 and sell it today you would earn a total of 333.00 from holding Advanced Technology Materials or generate 38.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Advanced Technology Materials
Performance |
| Timeline |
| Postal Savings Bank |
| Advanced Technology |
Postal Savings and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Advanced Technology
The main advantage of trading using opposite Postal Savings and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Postal Savings vs. Universal Scientific Industrial | Postal Savings vs. Sichuan Yahua Industrial | Postal Savings vs. Anhui Jinhe Industrial | Postal Savings vs. Xiamen Jihong Package |
| Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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