Correlation Between Postal Savings and Guangdong Qunxing
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By analyzing existing cross correlation between Postal Savings Bank and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Postal Savings and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Guangdong Qunxing.
Diversification Opportunities for Postal Savings and Guangdong Qunxing
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postal and Guangdong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Postal Savings i.e., Postal Savings and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Postal Savings and Guangdong Qunxing
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.32 times more return on investment than Guangdong Qunxing. However, Postal Savings Bank is 3.13 times less risky than Guangdong Qunxing. It trades about 0.01 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.13 per unit of risk. If you would invest 555.00 in Postal Savings Bank on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Postal Savings Bank or generate 0.0% 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. Guangdong Qunxing Toys
Performance |
| Timeline |
| Postal Savings Bank |
| Guangdong Qunxing Toys |
Postal Savings and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Guangdong Qunxing
The main advantage of trading using opposite Postal Savings and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Postal Savings vs. Industrial and Commercial | Postal Savings vs. China Construction Bank | Postal Savings vs. Agricultural Bank of | Postal Savings vs. Bank of China |
| Guangdong Qunxing vs. Northking Information Technology | Guangdong Qunxing vs. Jiangsu Yueda Investment | Guangdong Qunxing vs. Kuangda Technology Group | Guangdong Qunxing vs. Jointo Energy Investment |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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