Correlation Between Postal Savings and Guangdong Liantai
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By analyzing existing cross correlation between Postal Savings Bank and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Postal Savings and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Guangdong Liantai.
Diversification Opportunities for Postal Savings and Guangdong Liantai
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Postal and Guangdong is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Postal Savings i.e., Postal Savings and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Postal Savings and Guangdong Liantai
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.75 times more return on investment than Guangdong Liantai. However, Postal Savings Bank is 1.34 times less risky than Guangdong Liantai. It trades about -0.13 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.31 per unit of risk. If you would invest 550.00 in Postal Savings Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Postal Savings Bank or give up 4.55% 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Postal Savings Bank |
| Guangdong Liantai |
Postal Savings and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Guangdong Liantai
The main advantage of trading using opposite Postal Savings and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Postal Savings vs. Citic Guoan Wine | Postal Savings vs. Tinavi Medical Technologies | Postal Savings vs. Dymatic Chemicals | Postal Savings vs. Shenzhen Noposion Agrochemicals |
| Guangdong Liantai vs. MayAir Technology Co | Guangdong Liantai vs. Cultural Investment Holdings | Guangdong Liantai vs. Iat Automobile Technology | Guangdong Liantai vs. Guangzhou KingTeller Technology |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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