Correlation Between Postal Savings and Shandong Sanyuan
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By analyzing existing cross correlation between Postal Savings Bank and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Postal Savings and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shandong Sanyuan.
Diversification Opportunities for Postal Savings and Shandong Sanyuan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Shandong is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Postal Savings i.e., Postal Savings and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Postal Savings and Shandong Sanyuan
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Shandong Sanyuan. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 1.59 times less risky than Shandong Sanyuan. The stock trades about -0.24 of its potential returns per unit of risk. The Shandong Sanyuan Biotechnology is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2,797 in Shandong Sanyuan Biotechnology on August 25, 2024 and sell it today you would lose (101.00) from holding Shandong Sanyuan Biotechnology or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Postal Savings Bank |
| Shandong Sanyuan Bio |
Postal Savings and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shandong Sanyuan
The main advantage of trading using opposite Postal Savings and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Postal Savings vs. China Life Insurance | Postal Savings vs. Piotech Inc A | Postal Savings vs. Dongxing Sec Co | Postal Savings vs. Shanghai OPM Biosciences |
| Shandong Sanyuan vs. CICC Fund Management | Shandong Sanyuan vs. Guangdong Jingyi Metal | Shandong Sanyuan vs. Jiangxi Selon Industrial | Shandong Sanyuan vs. AVIC Fund Management |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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