Correlation Between Postal Savings and Shenzhen SDG
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By analyzing existing cross correlation between Postal Savings Bank and Shenzhen SDG Service, you can compare the effects of market volatilities on Postal Savings and Shenzhen SDG 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 SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shenzhen SDG.
Diversification Opportunities for Postal Savings and Shenzhen SDG
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and Shenzhen is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service 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 SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Postal Savings i.e., Postal Savings and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Postal Savings and Shenzhen SDG
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.7 times more return on investment than Shenzhen SDG. However, Postal Savings Bank is 1.43 times less risky than Shenzhen SDG. It trades about -0.04 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about -0.49 per unit of risk. If you would invest 547.00 in Postal Savings Bank on October 12, 2024 and sell it today you would lose (10.00) from holding Postal Savings Bank or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Shenzhen SDG Service
Performance |
| Timeline |
| Postal Savings Bank |
| Shenzhen SDG Service |
Postal Savings and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shenzhen SDG
The main advantage of trading using opposite Postal Savings and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.| Postal Savings vs. Industrial and Commercial | Postal Savings vs. China Construction Bank | Postal Savings vs. Agricultural Bank of | Postal Savings vs. Bank of China |
| Shenzhen SDG vs. Beijing Mainstreets Investment | Shenzhen SDG vs. Cultural Investment Holdings | Shenzhen SDG vs. Postal Savings Bank | Shenzhen SDG vs. Anhui Transport Consulting |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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