Correlation Between Postal Savings and Sichuan Hebang
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By analyzing existing cross correlation between Postal Savings Bank and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Postal Savings and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Sichuan Hebang.
Diversification Opportunities for Postal Savings and Sichuan Hebang
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and Sichuan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Postal Savings i.e., Postal Savings and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Postal Savings and Sichuan Hebang
Assuming the 90 days trading horizon Postal Savings is expected to generate 1.66 times less return on investment than Sichuan Hebang. But when comparing it to its historical volatility, Postal Savings Bank is 2.69 times less risky than Sichuan Hebang. It trades about 0.27 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 214.00 in Sichuan Hebang Biotechnology on September 13, 2024 and sell it today you would earn a total of 21.00 from holding Sichuan Hebang Biotechnology or generate 9.81% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Postal Savings Bank |
| Sichuan Hebang Biote |
Postal Savings and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Sichuan Hebang
The main advantage of trading using opposite Postal Savings and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang'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 |
| Sichuan Hebang vs. Hengli Industrial Development | Sichuan Hebang vs. Xiandai Investment Co | Sichuan Hebang vs. Yunnan Xiyi Industrial | Sichuan Hebang 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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