Correlation Between Postal Savings and GreenTech Environmental
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By analyzing existing cross correlation between Postal Savings Bank and GreenTech Environmental Co, you can compare the effects of market volatilities on Postal Savings and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and GreenTech Environmental.
Diversification Opportunities for Postal Savings and GreenTech Environmental
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and GreenTech is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Postal Savings i.e., Postal Savings and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Postal Savings and GreenTech Environmental
Assuming the 90 days trading horizon Postal Savings Bank is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Postal Savings Bank is 2.83 times less risky than GreenTech Environmental. The stock trades about -0.16 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,380 in GreenTech Environmental Co on August 27, 2024 and sell it today you would earn a total of 184.00 from holding GreenTech Environmental Co or generate 13.33% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Postal Savings Bank |
| GreenTech Environmental |
Postal Savings and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and GreenTech Environmental
The main advantage of trading using opposite Postal Savings and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Postal Savings vs. China Life Insurance | Postal Savings vs. Piotech Inc A | Postal Savings vs. Dongxing Sec Co | Postal Savings vs. Shanghai OPM Biosciences |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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