Correlation Between Postal Savings and Namchow Food
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By analyzing existing cross correlation between Postal Savings Bank and Namchow Food Group, you can compare the effects of market volatilities on Postal Savings and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Namchow Food.
Diversification Opportunities for Postal Savings and Namchow Food
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Namchow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Postal Savings i.e., Postal Savings and Namchow Food go up and down completely randomly.
Pair Corralation between Postal Savings and Namchow Food
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.73 times more return on investment than Namchow Food. However, Postal Savings Bank is 1.37 times less risky than Namchow Food. It trades about 0.01 of its potential returns per unit of risk. Namchow Food Group is currently generating about -0.01 per unit of risk. If you would invest 515.00 in Postal Savings Bank on August 31, 2024 and sell it today you would earn a total of 15.00 from holding Postal Savings Bank or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Postal Savings Bank vs. Namchow Food Group
Performance |
| Timeline |
| Postal Savings Bank |
| Namchow Food Group |
Postal Savings and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Namchow Food
The main advantage of trading using opposite Postal Savings and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Postal Savings vs. Lotus Health Group | Postal Savings vs. Nanjing Putian Telecommunications | Postal Savings vs. Spring Airlines Co | Postal Savings vs. Fiberhome Telecommunication Technologies |
| Namchow Food vs. Lutian Machinery Co | Namchow Food vs. PetroChina Co Ltd | Namchow Food vs. Bank of China | Namchow Food vs. Gansu Jiu Steel |
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 Correlations module to find global opportunities by holding instruments from different markets.
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