Correlation Between Postal Savings and Risen Energy
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By analyzing existing cross correlation between Postal Savings Bank and Risen Energy, you can compare the effects of market volatilities on Postal Savings and Risen Energy 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 Risen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Risen Energy.
Diversification Opportunities for Postal Savings and Risen Energy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Risen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Risen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Risen Energy 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 Risen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Risen Energy has no effect on the direction of Postal Savings i.e., Postal Savings and Risen Energy go up and down completely randomly.
Pair Corralation between Postal Savings and Risen Energy
Assuming the 90 days trading horizon Postal Savings is expected to generate 4.97 times less return on investment than Risen Energy. But when comparing it to its historical volatility, Postal Savings Bank is 3.29 times less risky than Risen Energy. It trades about 0.04 of its potential returns per unit of risk. Risen Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,404 in Risen Energy on August 31, 2024 and sell it today you would earn a total of 44.00 from holding Risen Energy or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Postal Savings Bank vs. Risen Energy
Performance |
| Timeline |
| Postal Savings Bank |
| Risen Energy |
Postal Savings and Risen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Risen Energy
The main advantage of trading using opposite Postal Savings and Risen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Risen Energy 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 Risen Energy will offset losses from the drop in Risen Energy's long position.| Postal Savings vs. Lotus Health Group | Postal Savings vs. Nanjing Putian Telecommunications | Postal Savings vs. Spring Airlines Co | Postal Savings vs. Fiberhome Telecommunication Technologies |
| Risen Energy vs. Qinghaihuading Industrial Co | Risen Energy vs. Sinomach Automobile Co | Risen Energy vs. Dongfeng Automobile Co | Risen Energy vs. Shenzhen Shenbao 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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