Correlation Between Postal Savings and Changchun Engley
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By analyzing existing cross correlation between Postal Savings Bank and Changchun Engley Automobile, you can compare the effects of market volatilities on Postal Savings and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Changchun Engley.
Diversification Opportunities for Postal Savings and Changchun Engley
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Postal and Changchun is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Postal Savings i.e., Postal Savings and Changchun Engley go up and down completely randomly.
Pair Corralation between Postal Savings and Changchun Engley
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Changchun Engley. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 1.83 times less risky than Changchun Engley. The stock trades about -0.19 of its potential returns per unit of risk. The Changchun Engley Automobile is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Changchun Engley Automobile on October 24, 2024 and sell it today you would lose (24.00) from holding Changchun Engley Automobile or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Changchun Engley Automobile
Performance |
| Timeline |
| Postal Savings Bank |
| Changchun Engley Aut |
Postal Savings and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Changchun Engley
The main advantage of trading using opposite Postal Savings and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Postal Savings vs. Luolai Home Textile | Postal Savings vs. Xiamen Goldenhome Co | Postal Savings vs. Xiangyang Automobile Bearing | Postal Savings vs. Zotye Automobile Co |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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