Correlation Between Postal Savings and Shandong Mining
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By analyzing existing cross correlation between Postal Savings Bank and Shandong Mining Machinery, you can compare the effects of market volatilities on Postal Savings and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shandong Mining.
Diversification Opportunities for Postal Savings and Shandong Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Postal and Shandong is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Postal Savings i.e., Postal Savings and Shandong Mining go up and down completely randomly.
Pair Corralation between Postal Savings and Shandong Mining
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.32 times more return on investment than Shandong Mining. However, Postal Savings Bank is 3.15 times less risky than Shandong Mining. It trades about 0.03 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about -0.39 per unit of risk. If you would invest 555.00 in Postal Savings Bank on October 10, 2024 and sell it today you would earn a total of 4.00 from holding Postal Savings Bank or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Shandong Mining Machinery
Performance |
| Timeline |
| Postal Savings Bank |
| Shandong Mining Machinery |
Postal Savings and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shandong Mining
The main advantage of trading using opposite Postal Savings and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Postal Savings vs. Jiajia Food Group | Postal Savings vs. Tianshui Huatian Technology | Postal Savings vs. Kuangda Technology Group | Postal Savings vs. Offshore Oil Engineering |
| Shandong Mining vs. Shanghai Shuixing Home | Shandong Mining vs. DO Home Collection | Shandong Mining vs. Beijing Kingsoft Office | Shandong Mining vs. Zoy Home Furnishing |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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