Correlation Between Postal Savings and Wenzhou Hongfeng
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By analyzing existing cross correlation between Postal Savings Bank and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Postal Savings and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Wenzhou Hongfeng.
Diversification Opportunities for Postal Savings and Wenzhou Hongfeng
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Wenzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Postal Savings i.e., Postal Savings and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Postal Savings and Wenzhou Hongfeng
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.36 times more return on investment than Wenzhou Hongfeng. However, Postal Savings Bank is 2.79 times less risky than Wenzhou Hongfeng. It trades about 0.27 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about 0.05 per unit of risk. If you would invest 515.00 in Postal Savings Bank on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Postal Savings Bank or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Postal Savings Bank |
| Wenzhou Hongfeng Ele |
Postal Savings and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Wenzhou Hongfeng
The main advantage of trading using opposite Postal Savings and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Gome Telecom Equipment | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
| Wenzhou Hongfeng vs. YLZ Information Tech | Wenzhou Hongfeng vs. Xiamen Goldenhome Co | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. Nanxing Furniture Machinery |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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