Correlation Between Postal Savings and Wuhan Xianglong
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By analyzing existing cross correlation between Postal Savings Bank and Wuhan Xianglong Power, you can compare the effects of market volatilities on Postal Savings and Wuhan Xianglong 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 Wuhan Xianglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Wuhan Xianglong.
Diversification Opportunities for Postal Savings and Wuhan Xianglong
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Postal and Wuhan is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Wuhan Xianglong Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Xianglong Power 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 Wuhan Xianglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Xianglong Power has no effect on the direction of Postal Savings i.e., Postal Savings and Wuhan Xianglong go up and down completely randomly.
Pair Corralation between Postal Savings and Wuhan Xianglong
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Wuhan Xianglong. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 2.03 times less risky than Wuhan Xianglong. The stock trades about -0.15 of its potential returns per unit of risk. The Wuhan Xianglong Power is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Wuhan Xianglong Power on November 28, 2024 and sell it today you would earn a total of 61.00 from holding Wuhan Xianglong Power or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Postal Savings Bank vs. Wuhan Xianglong Power
Performance |
| Timeline |
| Postal Savings Bank |
| Wuhan Xianglong Power |
Postal Savings and Wuhan Xianglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Wuhan Xianglong
The main advantage of trading using opposite Postal Savings and Wuhan Xianglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Wuhan Xianglong 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 Wuhan Xianglong will offset losses from the drop in Wuhan Xianglong's long position.| Postal Savings vs. Ming Yang Smart | Postal Savings vs. 159681 | Postal Savings vs. 159005 | Postal Savings vs. Loctek Ergonomic Technology |
| Wuhan Xianglong vs. Tieling Newcity Investment | Wuhan Xianglong vs. CICT Mobile Communication | Wuhan Xianglong vs. Shenzhen Zqgame | Wuhan Xianglong vs. Beijing Mainstreets Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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