Correlation Between Postal Savings and China Zheshang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Postal Savings Bank and China Zheshang Bank, you can compare the effects of market volatilities on Postal Savings and China Zheshang 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 China Zheshang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and China Zheshang.
Diversification Opportunities for Postal Savings and China Zheshang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Postal and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and China Zheshang Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zheshang Bank 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 China Zheshang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zheshang Bank has no effect on the direction of Postal Savings i.e., Postal Savings and China Zheshang go up and down completely randomly.
Pair Corralation between Postal Savings and China Zheshang
Assuming the 90 days trading horizon Postal Savings is expected to generate 12.88 times less return on investment than China Zheshang. But when comparing it to its historical volatility, Postal Savings Bank is 1.13 times less risky than China Zheshang. It trades about 0.01 of its potential returns per unit of risk. China Zheshang Bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 286.00 in China Zheshang Bank on September 3, 2024 and sell it today you would earn a total of 4.00 from holding China Zheshang Bank or generate 1.4% 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. China Zheshang Bank
Performance |
| Timeline |
| Postal Savings Bank |
| China Zheshang Bank |
Postal Savings and China Zheshang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and China Zheshang
The main advantage of trading using opposite Postal Savings and China Zheshang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, China Zheshang 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 China Zheshang will offset losses from the drop in China Zheshang's long position.| Postal Savings vs. Chongqing Road Bridge | Postal Savings vs. Wuhan Xianglong Power | Postal Savings vs. Empyrean Technology Co | Postal Savings vs. Yuanjie Semiconductor Technology |
| China Zheshang vs. Inly Media Co | China Zheshang vs. Ciwen Media Co | China Zheshang vs. Zhengzhou Qianweiyangchu Food | China Zheshang vs. Guilin Seamild Foods |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |