Correlation Between Postal Savings and Wuxi Chemical
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By analyzing existing cross correlation between Postal Savings Bank and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Postal Savings and Wuxi Chemical 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 Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Wuxi Chemical.
Diversification Opportunities for Postal Savings and Wuxi Chemical
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Postal and Wuxi is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment 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 Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Postal Savings i.e., Postal Savings and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Postal Savings and Wuxi Chemical
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.59 times more return on investment than Wuxi Chemical. However, Postal Savings Bank is 1.69 times less risky than Wuxi Chemical. It trades about 0.03 of its potential returns per unit of risk. Wuxi Chemical Equipment is currently generating about 0.0 per unit of risk. If you would invest 441.00 in Postal Savings Bank on October 26, 2024 and sell it today you would earn a total of 95.00 from holding Postal Savings Bank or generate 21.54% 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. Wuxi Chemical Equipment
Performance |
| Timeline |
| Postal Savings Bank |
| Wuxi Chemical Equipment |
Postal Savings and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Wuxi Chemical
The main advantage of trading using opposite Postal Savings and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Wuxi Chemical 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical'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 |
| Wuxi Chemical vs. Wuhan Yangtze Communication | Wuxi Chemical vs. Ping An Insurance | Wuxi Chemical vs. Eastern Air Logistics | Wuxi Chemical vs. China Mobile Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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