Correlation Between Postal Savings and Shanghai Metersbonwe
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By analyzing existing cross correlation between Postal Savings Bank and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Postal Savings and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shanghai Metersbonwe.
Diversification Opportunities for Postal Savings and Shanghai Metersbonwe
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postal and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Postal Savings i.e., Postal Savings and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Postal Savings and Shanghai Metersbonwe
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.51 times more return on investment than Shanghai Metersbonwe. However, Postal Savings Bank is 1.97 times less risky than Shanghai Metersbonwe. It trades about 0.03 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.01 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Postal Savings Bank |
| Shanghai Metersbonwe |
Postal Savings and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shanghai Metersbonwe
The main advantage of trading using opposite Postal Savings and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe'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 |
| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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