Correlation Between Postal Savings and Beijing Venustech
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By analyzing existing cross correlation between Postal Savings Bank and Beijing Venustech, you can compare the effects of market volatilities on Postal Savings and Beijing Venustech 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 Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Beijing Venustech.
Diversification Opportunities for Postal Savings and Beijing Venustech
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Postal Savings i.e., Postal Savings and Beijing Venustech go up and down completely randomly.
Pair Corralation between Postal Savings and Beijing Venustech
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.37 times more return on investment than Beijing Venustech. However, Postal Savings Bank is 2.67 times less risky than Beijing Venustech. It trades about -0.03 of its potential returns per unit of risk. Beijing Venustech is currently generating about -0.02 per unit of risk. If you would invest 539.00 in Postal Savings Bank on August 30, 2024 and sell it today you would lose (5.00) from holding Postal Savings Bank or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Beijing Venustech
Performance |
| Timeline |
| Postal Savings Bank |
| Beijing Venustech |
Postal Savings and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Beijing Venustech
The main advantage of trading using opposite Postal Savings and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Beijing Venustech 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 Venustech will offset losses from the drop in Beijing Venustech's long position.| Postal Savings vs. Ming Yang Smart | Postal Savings vs. 159005 | Postal Savings vs. 516220 | Postal Savings vs. Shandong Ruifeng Chemical |
| Beijing Venustech vs. Shuhua Sports Co | Beijing Venustech vs. Jinling Hotel Corp | Beijing Venustech vs. China Sports Industry | Beijing Venustech vs. Sichuan Yahua Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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