Correlation Between Postal Savings and Hua Xia
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By analyzing existing cross correlation between Postal Savings Bank and Hua Xia Bank, you can compare the effects of market volatilities on Postal Savings and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Hua Xia.
Diversification Opportunities for Postal Savings and Hua Xia
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Postal and Hua is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Postal Savings i.e., Postal Savings and Hua Xia go up and down completely randomly.
Pair Corralation between Postal Savings and Hua Xia
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.2 times less return on investment than Hua Xia. But when comparing it to its historical volatility, Postal Savings Bank is 1.17 times less risky than Hua Xia. It trades about 0.18 of its potential returns per unit of risk. Hua Xia Bank is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 618.00 in Hua Xia Bank on September 12, 2024 and sell it today you would earn a total of 154.00 from holding Hua Xia Bank or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Hua Xia Bank
Performance |
| Timeline |
| Postal Savings Bank |
| Hua Xia Bank |
Postal Savings and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Hua Xia
The main advantage of trading using opposite Postal Savings and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Gome Telecom Equipment | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
| Hua Xia vs. Industrial and Commercial | Hua Xia vs. China Construction Bank | Hua Xia vs. Bank of China | Hua Xia 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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