Correlation Between Postal Savings and Focus Media
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By analyzing existing cross correlation between Postal Savings Bank and Focus Media Information, you can compare the effects of market volatilities on Postal Savings and Focus Media 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 Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Focus Media.
Diversification Opportunities for Postal Savings and Focus Media
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and Focus is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Focus Media Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Media Information 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 Focus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Media Information has no effect on the direction of Postal Savings i.e., Postal Savings and Focus Media go up and down completely randomly.
Pair Corralation between Postal Savings and Focus Media
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.76 times more return on investment than Focus Media. However, Postal Savings Bank is 1.31 times less risky than Focus Media. It trades about 0.04 of its potential returns per unit of risk. Focus Media Information is currently generating about 0.03 per unit of risk. If you would invest 437.00 in Postal Savings Bank on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Postal Savings Bank or generate 22.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Focus Media Information
Performance |
| Timeline |
| Postal Savings Bank |
| Focus Media Information |
Postal Savings and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Focus Media
The main advantage of trading using opposite Postal Savings and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Focus Media 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 Focus Media will offset losses from the drop in Focus Media's long position.| Postal Savings vs. Industrial and Commercial | Postal Savings vs. Agricultural Bank of | Postal Savings vs. China Construction Bank | Postal Savings vs. Bank of China |
| Focus Media vs. Juneyao Airlines | Focus Media vs. Oppein Home Group | Focus Media vs. Hunan Mendale Hometextile | Focus Media vs. Westone Information Industry |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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