Correlation Between Postal Savings and Jiangsu GDK
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By analyzing existing cross correlation between Postal Savings Bank and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Postal Savings and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Jiangsu GDK.
Diversification Opportunities for Postal Savings and Jiangsu GDK
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Jiangsu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Postal Savings i.e., Postal Savings and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Postal Savings and Jiangsu GDK
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.43 times more return on investment than Jiangsu GDK. However, Postal Savings Bank is 2.31 times less risky than Jiangsu GDK. It trades about 0.03 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 461.00 in Postal Savings Bank on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Postal Savings Bank or generate 14.97% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Postal Savings Bank |
| Jiangsu GDK Biotechnology |
Postal Savings and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Jiangsu GDK
The main advantage of trading using opposite Postal Savings and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Postal Savings vs. Chongqing Road Bridge | Postal Savings vs. Wuhan Xianglong Power | Postal Savings vs. Empyrean Technology Co | Postal Savings vs. Yuanjie Semiconductor Technology |
| Jiangsu GDK vs. Chengdu Kanghua Biological | Jiangsu GDK vs. Beijing Wantai Biological | Jiangsu GDK vs. Suzhou Novoprotein Scientific | Jiangsu GDK vs. Aluminum Corp of |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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