Correlation Between Postal Savings and CSPC Innovation
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By analyzing existing cross correlation between Postal Savings Bank and CSPC Innovation Pharmaceutical, you can compare the effects of market volatilities on Postal Savings and CSPC Innovation 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 CSPC Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and CSPC Innovation.
Diversification Opportunities for Postal Savings and CSPC Innovation
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and CSPC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and CSPC Innovation Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSPC Innovation Phar 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 CSPC Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSPC Innovation Phar has no effect on the direction of Postal Savings i.e., Postal Savings and CSPC Innovation go up and down completely randomly.
Pair Corralation between Postal Savings and CSPC Innovation
Assuming the 90 days trading horizon Postal Savings is expected to generate 6.39 times less return on investment than CSPC Innovation. But when comparing it to its historical volatility, Postal Savings Bank is 2.84 times less risky than CSPC Innovation. It trades about 0.08 of its potential returns per unit of risk. CSPC Innovation Pharmaceutical is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,548 in CSPC Innovation Pharmaceutical on September 1, 2024 and sell it today you would earn a total of 303.00 from holding CSPC Innovation Pharmaceutical or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Postal Savings Bank vs. CSPC Innovation Pharmaceutical
Performance |
| Timeline |
| Postal Savings Bank |
| CSPC Innovation Phar |
Postal Savings and CSPC Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and CSPC Innovation
The main advantage of trading using opposite Postal Savings and CSPC Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, CSPC Innovation 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 CSPC Innovation will offset losses from the drop in CSPC Innovation's long position.| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Bus Online Co | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
| CSPC Innovation vs. Juneyao Airlines | CSPC Innovation vs. Sunwave Communications Co | CSPC Innovation vs. Elite Color Environmental | CSPC Innovation vs. Jiangxi JDL Environmental |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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