Correlation Between Postal Savings and Anyang Iron
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By analyzing existing cross correlation between Postal Savings Bank and Anyang Iron Steel, you can compare the effects of market volatilities on Postal Savings and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Anyang Iron.
Diversification Opportunities for Postal Savings and Anyang Iron
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Postal and Anyang is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Postal Savings i.e., Postal Savings and Anyang Iron go up and down completely randomly.
Pair Corralation between Postal Savings and Anyang Iron
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.42 times more return on investment than Anyang Iron. However, Postal Savings Bank is 2.4 times less risky than Anyang Iron. It trades about -0.12 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about -0.3 per unit of risk. If you would invest 550.00 in Postal Savings Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Postal Savings Bank or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Postal Savings Bank vs. Anyang Iron Steel
Performance |
| Timeline |
| Postal Savings Bank |
| Anyang Iron Steel |
Postal Savings and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Anyang Iron
The main advantage of trading using opposite Postal Savings and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron'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 |
| Anyang Iron vs. Ningbo Fangzheng Automobile | Anyang Iron vs. Guangxi Wuzhou Communications | Anyang Iron vs. Tangel Publishing | Anyang Iron vs. Shanghai Action Education |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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