Correlation Between Postal Savings and Shandong Sinoglory
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By analyzing existing cross correlation between Postal Savings Bank and Shandong Sinoglory Health, you can compare the effects of market volatilities on Postal Savings and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shandong Sinoglory.
Diversification Opportunities for Postal Savings and Shandong Sinoglory
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Shandong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Postal Savings i.e., Postal Savings and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Postal Savings and Shandong Sinoglory
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.7 times more return on investment than Shandong Sinoglory. However, Postal Savings Bank is 1.42 times less risky than Shandong Sinoglory. It trades about 0.03 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.03 per unit of risk. If you would invest 441.00 in Postal Savings Bank on August 30, 2024 and sell it today you would earn a total of 93.00 from holding Postal Savings Bank or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Postal Savings Bank |
| Shandong Sinoglory Health |
Postal Savings and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shandong Sinoglory
The main advantage of trading using opposite Postal Savings and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Postal Savings vs. Kweichow Moutai Co | Postal Savings vs. Contemporary Amperex Technology | Postal Savings vs. G bits Network Technology | Postal Savings vs. BYD Co Ltd |
| Shandong Sinoglory vs. PetroChina Co Ltd | Shandong Sinoglory vs. China Mobile Limited | Shandong Sinoglory vs. Ping An Insurance | Shandong Sinoglory vs. China Petroleum Chemical |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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