Correlation Between Postal Savings and Cloud Live
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By analyzing existing cross correlation between Postal Savings Bank and Cloud Live Technology, you can compare the effects of market volatilities on Postal Savings and Cloud Live 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 Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Cloud Live.
Diversification Opportunities for Postal Savings and Cloud Live
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Postal and Cloud is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology 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 Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Postal Savings i.e., Postal Savings and Cloud Live go up and down completely randomly.
Pair Corralation between Postal Savings and Cloud Live
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Cloud Live. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 2.92 times less risky than Cloud Live. The stock trades about -0.05 of its potential returns per unit of risk. The Cloud Live Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Cloud Live Technology on October 14, 2024 and sell it today you would lose (22.00) from holding Cloud Live Technology or give up 7.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Cloud Live Technology
Performance |
| Timeline |
| Postal Savings Bank |
| Cloud Live Technology |
Postal Savings and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Cloud Live
The main advantage of trading using opposite Postal Savings and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.| Postal Savings vs. Thinkingdom Media Group | Postal Savings vs. Shenzhen Noposion Agrochemicals | Postal Savings vs. Hubei Xingfa Chemicals | Postal Savings vs. Guangzhou Jinyi Media |
| Cloud Live vs. Postal Savings Bank | Cloud Live vs. Shaanxi Construction Machinery | Cloud Live vs. Allied Machinery Co | Cloud Live vs. Lutian Machinery Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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