Correlation Between Postal Savings and Xilinmen Furniture
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By analyzing existing cross correlation between Postal Savings Bank and Xilinmen Furniture Co, you can compare the effects of market volatilities on Postal Savings and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Xilinmen Furniture.
Diversification Opportunities for Postal Savings and Xilinmen Furniture
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and Xilinmen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Postal Savings i.e., Postal Savings and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Postal Savings and Xilinmen Furniture
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.45 times more return on investment than Xilinmen Furniture. However, Postal Savings Bank is 2.21 times less risky than Xilinmen Furniture. It trades about 0.13 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.05 per unit of risk. If you would invest 530.00 in Postal Savings Bank on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Postal Savings Bank or generate 3.4% 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. Xilinmen Furniture Co
Performance |
| Timeline |
| Postal Savings Bank |
| Xilinmen Furniture |
Postal Savings and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Xilinmen Furniture
The main advantage of trading using opposite Postal Savings and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Postal Savings vs. Guangzhou Restaurants Group | Postal Savings vs. Anhui Fuhuang Steel | Postal Savings vs. Changjiang Jinggong Steel | Postal Savings vs. Bengang Steel Plates |
| Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. Guilin Seamild Foods | Xilinmen Furniture vs. Jiamei Food Packaging | Xilinmen Furniture vs. Postal Savings Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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