Correlation Between Postal Savings and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Postal Savings Bank and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Postal Savings and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Jiangsu Financial.
Diversification Opportunities for Postal Savings and Jiangsu Financial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Postal Savings i.e., Postal Savings and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Postal Savings and Jiangsu Financial
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.24 times less return on investment than Jiangsu Financial. But when comparing it to its historical volatility, Postal Savings Bank is 1.29 times less risky than Jiangsu Financial. It trades about 0.08 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Jiangsu Financial Leasing on August 29, 2024 and sell it today you would earn a total of 47.00 from holding Jiangsu Financial Leasing or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Postal Savings Bank |
| Jiangsu Financial Leasing |
Postal Savings and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Jiangsu Financial
The main advantage of trading using opposite Postal Savings and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| Postal Savings vs. Kweichow Moutai Co | Postal Savings vs. Contemporary Amperex Technology | Postal Savings vs. G bits Network Technology | Postal Savings vs. BYD Co Ltd |
| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Contemporary Amperex Technology | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. BYD Co Ltd |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |