Correlation Between Postal Savings and Linewell Software
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By analyzing existing cross correlation between Postal Savings Bank and Linewell Software Co, you can compare the effects of market volatilities on Postal Savings and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Linewell Software.
Diversification Opportunities for Postal Savings and Linewell Software
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Linewell is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Postal Savings i.e., Postal Savings and Linewell Software go up and down completely randomly.
Pair Corralation between Postal Savings and Linewell Software
Assuming the 90 days trading horizon Postal Savings is expected to generate 3.27 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Postal Savings Bank is 2.32 times less risky than Linewell Software. It trades about 0.13 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 803.00 in Linewell Software Co on September 3, 2024 and sell it today you would earn a total of 418.00 from holding Linewell Software Co or generate 52.05% 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. Linewell Software Co
Performance |
| Timeline |
| Postal Savings Bank |
| Linewell Software |
Postal Savings and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Linewell Software
The main advantage of trading using opposite Postal Savings and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software'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 |
| Linewell Software vs. Agricultural Bank of | Linewell Software vs. China Construction Bank | Linewell Software vs. Postal Savings Bank | Linewell Software vs. Bank of Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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