Correlation Between Postal Savings and Citic Guoan
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By analyzing existing cross correlation between Postal Savings Bank and Citic Guoan Wine, you can compare the effects of market volatilities on Postal Savings and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Citic Guoan.
Diversification Opportunities for Postal Savings and Citic Guoan
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and Citic is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Postal Savings i.e., Postal Savings and Citic Guoan go up and down completely randomly.
Pair Corralation between Postal Savings and Citic Guoan
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.57 times more return on investment than Citic Guoan. However, Postal Savings Bank is 1.75 times less risky than Citic Guoan. It trades about -0.1 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.26 per unit of risk. If you would invest 548.00 in Postal Savings Bank on October 18, 2024 and sell it today you would lose (21.00) from holding Postal Savings Bank or give up 3.83% 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. Citic Guoan Wine
Performance |
| Timeline |
| Postal Savings Bank |
| Citic Guoan Wine |
Postal Savings and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Citic Guoan
The main advantage of trading using opposite Postal Savings and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Postal Savings vs. Citic Guoan Wine | Postal Savings vs. Tinavi Medical Technologies | Postal Savings vs. Dymatic Chemicals | Postal Savings vs. Shenzhen Noposion Agrochemicals |
| Citic Guoan vs. Guangzhou Haige Communications | Citic Guoan vs. Shandong Polymer Biochemicals | Citic Guoan vs. Ningbo Fangzheng Automobile | Citic Guoan vs. Fibocom Wireless |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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