Correlation Between Postal Savings and Jonjee Hi
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By analyzing existing cross correlation between Postal Savings Bank and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Postal Savings and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Jonjee Hi.
Diversification Opportunities for Postal Savings and Jonjee Hi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Jonjee is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Postal Savings i.e., Postal Savings and Jonjee Hi go up and down completely randomly.
Pair Corralation between Postal Savings and Jonjee Hi
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.49 times more return on investment than Jonjee Hi. However, Postal Savings Bank is 2.06 times less risky than Jonjee Hi. It trades about -0.13 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.17 per unit of risk. If you would invest 542.00 in Postal Savings Bank on August 28, 2024 and sell it today you would lose (18.00) from holding Postal Savings Bank or give up 3.32% 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. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Postal Savings Bank |
| Jonjee Hi tech |
Postal Savings and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Jonjee Hi
The main advantage of trading using opposite Postal Savings and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Postal Savings vs. Eastern Communications Co | Postal Savings vs. Guangdong Shenglu Telecommunication | Postal Savings vs. Jilin Jlu Communication | Postal Savings vs. Yingde Greatchem Chemicals |
| Jonjee Hi vs. China Petroleum Chemical | Jonjee Hi vs. PetroChina Co Ltd | Jonjee Hi vs. China State Construction | Jonjee Hi vs. China Railway Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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