Correlation Between Postal Savings and Bank of Changsha
Specify exactly 2 symbols:
By analyzing existing cross correlation between Postal Savings Bank and Bank of Changsha, you can compare the effects of market volatilities on Postal Savings and Bank of Changsha 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 Bank of Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Bank of Changsha.
Diversification Opportunities for Postal Savings and Bank of Changsha
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Postal and Bank is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Bank of Changsha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Changsha has no effect on the direction of Postal Savings i.e., Postal Savings and Bank of Changsha go up and down completely randomly.
Pair Corralation between Postal Savings and Bank of Changsha
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.22 times less return on investment than Bank of Changsha. In addition to that, Postal Savings is 1.0 times more volatile than Bank of Changsha. It trades about 0.04 of its total potential returns per unit of risk. Bank of Changsha is currently generating about 0.05 per unit of volatility. If you would invest 629.00 in Bank of Changsha on September 13, 2024 and sell it today you would earn a total of 249.00 from holding Bank of Changsha or generate 39.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Bank of Changsha
Performance |
| Timeline |
| Postal Savings Bank |
| Bank of Changsha |
Postal Savings and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Bank of Changsha
The main advantage of trading using opposite Postal Savings and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Bank of Changsha 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 Bank of Changsha will offset losses from the drop in Bank of Changsha's long position.| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Gome Telecom Equipment | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
| Bank of Changsha vs. Hainan Airlines Co | Bank of Changsha vs. Shantui Construction Machinery | Bank of Changsha vs. Quectel Wireless Solutions | Bank of Changsha vs. Anhui Huilong Agricultural |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |