Correlation Between Postal Savings and China Longyuan
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By analyzing existing cross correlation between Postal Savings Bank and China Longyuan Power, you can compare the effects of market volatilities on Postal Savings and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and China Longyuan.
Diversification Opportunities for Postal Savings and China Longyuan
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Postal Savings i.e., Postal Savings and China Longyuan go up and down completely randomly.
Pair Corralation between Postal Savings and China Longyuan
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.81 times more return on investment than China Longyuan. However, Postal Savings Bank is 1.24 times less risky than China Longyuan. It trades about 0.03 of its potential returns per unit of risk. China Longyuan Power is currently generating about 0.0 per unit of risk. If you would invest 434.00 in Postal Savings Bank on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Postal Savings Bank or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. China Longyuan Power
Performance |
| Timeline |
| Postal Savings Bank |
| China Longyuan Power |
Postal Savings and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and China Longyuan
The main advantage of trading using opposite Postal Savings and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Postal Savings vs. Chongqing Road Bridge | Postal Savings vs. Wuhan Xianglong Power | Postal Savings vs. Empyrean Technology Co | Postal Savings vs. Yuanjie Semiconductor Technology |
| China Longyuan vs. Guangzhou Boji Medical | China Longyuan vs. Hainan Airlines Co | China Longyuan vs. Spring Airlines Co | China Longyuan vs. Hengkang Medical Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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