Correlation Between Postal Savings and Beijing UniStrong
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By analyzing existing cross correlation between Postal Savings Bank and Beijing UniStrong Science, you can compare the effects of market volatilities on Postal Savings and Beijing UniStrong 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 Beijing UniStrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Beijing UniStrong.
Diversification Opportunities for Postal Savings and Beijing UniStrong
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Postal and Beijing is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Beijing UniStrong Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing UniStrong Science 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 Beijing UniStrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing UniStrong Science has no effect on the direction of Postal Savings i.e., Postal Savings and Beijing UniStrong go up and down completely randomly.
Pair Corralation between Postal Savings and Beijing UniStrong
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.54 times more return on investment than Beijing UniStrong. However, Postal Savings Bank is 1.86 times less risky than Beijing UniStrong. It trades about -0.22 of its potential returns per unit of risk. Beijing UniStrong Science is currently generating about -0.24 per unit of risk. If you would invest 559.00 in Postal Savings Bank on October 23, 2024 and sell it today you would lose (37.00) from holding Postal Savings Bank or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Postal Savings Bank vs. Beijing UniStrong Science
Performance |
| Timeline |
| Postal Savings Bank |
| Beijing UniStrong Science |
Postal Savings and Beijing UniStrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Beijing UniStrong
The main advantage of trading using opposite Postal Savings and Beijing UniStrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Beijing UniStrong 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 Beijing UniStrong will offset losses from the drop in Beijing UniStrong's long position.| Postal Savings vs. Luolai Home Textile | Postal Savings vs. Xiamen Goldenhome Co | Postal Savings vs. Xiangyang Automobile Bearing | Postal Savings vs. Zotye Automobile Co |
| Beijing UniStrong vs. Kuang Chi Technologies | Beijing UniStrong vs. Nanjing Putian Telecommunications | Beijing UniStrong vs. Ningbo Tech Bank Co | Beijing UniStrong vs. Postal Savings Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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