Correlation Between Postal Savings and Qi An
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By analyzing existing cross correlation between Postal Savings Bank and Qi An Xin, you can compare the effects of market volatilities on Postal Savings and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Qi An.
Diversification Opportunities for Postal Savings and Qi An
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and 688561 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Postal Savings i.e., Postal Savings and Qi An go up and down completely randomly.
Pair Corralation between Postal Savings and Qi An
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.36 times more return on investment than Qi An. However, Postal Savings Bank is 2.74 times less risky than Qi An. It trades about -0.06 of its potential returns per unit of risk. Qi An Xin is currently generating about -0.07 per unit of risk. If you would invest 542.00 in Postal Savings Bank on August 28, 2024 and sell it today you would lose (9.00) from holding Postal Savings Bank or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Qi An Xin
Performance |
| Timeline |
| Postal Savings Bank |
| Qi An Xin |
Postal Savings and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Qi An
The main advantage of trading using opposite Postal Savings and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| Postal Savings vs. Eastern Communications Co | Postal Savings vs. Guangdong Shenglu Telecommunication | Postal Savings vs. Jilin Jlu Communication | Postal Savings vs. Yingde Greatchem Chemicals |
| Qi An vs. Jinhe Biotechnology Co | Qi An vs. Shandong Sanyuan Biotechnology | Qi An vs. Guangzhou KingTeller Technology | Qi An vs. CGN Nuclear 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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