Correlation Between Postal Savings and Guangdong Skychem
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By analyzing existing cross correlation between Postal Savings Bank and Guangdong Skychem Technology, you can compare the effects of market volatilities on Postal Savings and Guangdong Skychem 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 Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Guangdong Skychem.
Diversification Opportunities for Postal Savings and Guangdong Skychem
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postal and Guangdong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Postal Savings i.e., Postal Savings and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Postal Savings and Guangdong Skychem
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.34 times more return on investment than Guangdong Skychem. However, Postal Savings Bank is 2.94 times less risky than Guangdong Skychem. It trades about -0.04 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about -0.04 per unit of risk. If you would invest 541.00 in Postal Savings Bank on December 27, 2024 and sell it today you would lose (8.00) from holding Postal Savings Bank or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Postal Savings Bank |
| Guangdong Skychem |
Postal Savings and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Guangdong Skychem
The main advantage of trading using opposite Postal Savings and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Guangdong Skychem 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 Skychem will offset losses from the drop in Guangdong Skychem's long position.| Postal Savings vs. Elec Tech International Co | Postal Savings vs. Eyebright Medical Technology | Postal Savings vs. HUAQIN TECHNOLOGY LTD | Postal Savings vs. Guobo Electronics Co |
| Guangdong Skychem vs. Dazhong Transportation Group | Guangdong Skychem vs. Chengdu Xinzhu RoadBridge | Guangdong Skychem vs. Shenzhen Urban Transport | Guangdong Skychem vs. Hubeiyichang Transportation Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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