Correlation Between Postal Savings and GRG Banking
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By analyzing existing cross correlation between Postal Savings Bank and GRG Banking Equipment, you can compare the effects of market volatilities on Postal Savings and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and GRG Banking.
Diversification Opportunities for Postal Savings and GRG Banking
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and GRG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Postal Savings i.e., Postal Savings and GRG Banking go up and down completely randomly.
Pair Corralation between Postal Savings and GRG Banking
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.49 times less return on investment than GRG Banking. But when comparing it to its historical volatility, Postal Savings Bank is 1.73 times less risky than GRG Banking. It trades about 0.03 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,206 in GRG Banking Equipment on September 4, 2024 and sell it today you would earn a total of 109.00 from holding GRG Banking Equipment or generate 9.04% 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. GRG Banking Equipment
Performance |
| Timeline |
| Postal Savings Bank |
| GRG Banking Equipment |
Postal Savings and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and GRG Banking
The main advantage of trading using opposite Postal Savings and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking'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 |
| GRG Banking vs. Kweichow Moutai Co | GRG Banking vs. Contemporary Amperex Technology | GRG Banking vs. G bits Network Technology | GRG Banking vs. Beijing Roborock 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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