Correlation Between Postal Savings and Cathay Biotech
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By analyzing existing cross correlation between Postal Savings Bank and Cathay Biotech, you can compare the effects of market volatilities on Postal Savings and Cathay Biotech 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 Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Cathay Biotech.
Diversification Opportunities for Postal Savings and Cathay Biotech
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and Cathay is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech 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 Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of Postal Savings i.e., Postal Savings and Cathay Biotech go up and down completely randomly.
Pair Corralation between Postal Savings and Cathay Biotech
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.65 times more return on investment than Cathay Biotech. However, Postal Savings Bank is 1.55 times less risky than Cathay Biotech. It trades about 0.03 of its potential returns per unit of risk. Cathay Biotech is currently generating about -0.03 per unit of risk. If you would invest 457.00 in Postal Savings Bank on October 7, 2024 and sell it today you would earn a total of 92.00 from holding Postal Savings Bank or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Cathay Biotech
Performance |
| Timeline |
| Postal Savings Bank |
| Cathay Biotech |
Postal Savings and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Cathay Biotech
The main advantage of trading using opposite Postal Savings and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Cathay Biotech 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 Cathay Biotech will offset losses from the drop in Cathay Biotech's long position.| Postal Savings vs. Gansu Jiu Steel | Postal Savings vs. Aba Chemicals Corp | Postal Savings vs. Yes Optoelectronics Co | Postal Savings vs. Queclink Wireless Solutions |
| Cathay Biotech vs. Sinomach General Machinery | Cathay Biotech vs. Daoming OpticsChemical Co | Cathay Biotech vs. Shantui Construction Machinery | Cathay Biotech vs. Wuxi Chemical Equipment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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