Correlation Between Postal Savings and Shenzhen Mindray
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By analyzing existing cross correlation between Postal Savings Bank and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Postal Savings and Shenzhen Mindray 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 Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shenzhen Mindray.
Diversification Opportunities for Postal Savings and Shenzhen Mindray
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Shenzhen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio 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 Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Postal Savings i.e., Postal Savings and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Postal Savings and Shenzhen Mindray
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.61 times more return on investment than Shenzhen Mindray. However, Postal Savings Bank is 1.64 times less risky than Shenzhen Mindray. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.01 per unit of risk. If you would invest 515.00 in Postal Savings Bank on August 24, 2024 and sell it today you would earn a total of 15.00 from holding Postal Savings Bank or generate 2.91% 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. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Postal Savings Bank |
| Shenzhen Mindray Bio |
Postal Savings and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shenzhen Mindray
The main advantage of trading using opposite Postal Savings and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shenzhen Mindray 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 Mindray will offset losses from the drop in Shenzhen Mindray's long position.| Postal Savings vs. BYD Co Ltd | Postal Savings vs. China Mobile Limited | Postal Savings vs. Industrial and Commercial | Postal Savings vs. China State Construction |
| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. China Construction Bank | Shenzhen Mindray vs. Bank of China | Shenzhen Mindray vs. Agricultural Bank of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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