Correlation Between Postal Savings and Senci Electric
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By analyzing existing cross correlation between Postal Savings Bank and Senci Electric Machinery, you can compare the effects of market volatilities on Postal Savings and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Senci Electric.
Diversification Opportunities for Postal Savings and Senci Electric
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Postal and Senci is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Postal Savings i.e., Postal Savings and Senci Electric go up and down completely randomly.
Pair Corralation between Postal Savings and Senci Electric
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the Senci Electric. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 2.26 times less risky than Senci Electric. The stock trades about -0.09 of its potential returns per unit of risk. The Senci Electric Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,680 in Senci Electric Machinery on October 15, 2024 and sell it today you would earn a total of 30.00 from holding Senci Electric Machinery or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Senci Electric Machinery
Performance |
| Timeline |
| Postal Savings Bank |
| Senci Electric Machinery |
Postal Savings and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Senci Electric
The main advantage of trading using opposite Postal Savings and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.| Postal Savings vs. Thinkingdom Media Group | Postal Savings vs. Shenzhen Noposion Agrochemicals | Postal Savings vs. Hubei Xingfa Chemicals | Postal Savings vs. Guangzhou Jinyi Media |
| Senci Electric vs. Cloud Live Technology | Senci Electric vs. Nanjing Putian Telecommunications | Senci Electric vs. Tianjin Realty Development | Senci Electric vs. Shenzhen Coship Electronics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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