Correlation Between Postal Savings and Shenzhen Kexin
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By analyzing existing cross correlation between Postal Savings Bank and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Postal Savings and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shenzhen Kexin.
Diversification Opportunities for Postal Savings and Shenzhen Kexin
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Postal Savings i.e., Postal Savings and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Postal Savings and Shenzhen Kexin
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.36 times more return on investment than Shenzhen Kexin. However, Postal Savings Bank is 2.78 times less risky than Shenzhen Kexin. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.22 per unit of risk. If you would invest 530.00 in Postal Savings Bank on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Postal Savings Bank or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Postal Savings Bank vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Postal Savings Bank |
| Shenzhen Kexin Commu |
Postal Savings and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shenzhen Kexin
The main advantage of trading using opposite Postal Savings and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| Postal Savings vs. Industrial and Commercial | Postal Savings vs. Agricultural Bank of | Postal Savings vs. China Construction Bank | Postal Savings vs. Bank of China |
| Shenzhen Kexin vs. Anhui Fuhuang Steel | Shenzhen Kexin vs. Guangdong Liantai Environmental | Shenzhen Kexin vs. Anyang Iron Steel | Shenzhen Kexin vs. CSSC Offshore Marine |
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 Stocks Directory module to find actively traded stocks across global markets.
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