Correlation Between Postal Savings and Youyou Foods
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By analyzing existing cross correlation between Postal Savings Bank and Youyou Foods Co, you can compare the effects of market volatilities on Postal Savings and Youyou Foods 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 Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Youyou Foods.
Diversification Opportunities for Postal Savings and Youyou Foods
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Postal and Youyou is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods 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 Youyou Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods has no effect on the direction of Postal Savings i.e., Postal Savings and Youyou Foods go up and down completely randomly.
Pair Corralation between Postal Savings and Youyou Foods
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.57 times more return on investment than Youyou Foods. However, Postal Savings Bank is 1.74 times less risky than Youyou Foods. It trades about -0.08 of its potential returns per unit of risk. Youyou Foods Co is currently generating about -0.07 per unit of risk. If you would invest 543.00 in Postal Savings Bank on October 20, 2024 and sell it today you would lose (17.00) from holding Postal Savings Bank or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Youyou Foods Co
Performance |
| Timeline |
| Postal Savings Bank |
| Youyou Foods |
Postal Savings and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Youyou Foods
The main advantage of trading using opposite Postal Savings and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Youyou Foods 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 Youyou Foods will offset losses from the drop in Youyou Foods' long position.| Postal Savings vs. Ningbo Homelink Eco iTech | Postal Savings vs. Easyhome New Retail | Postal Savings vs. Gansu Jiu Steel | Postal Savings vs. Zoy Home Furnishing |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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