Correlation Between Postal Savings and Shanghai Yaohua
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By analyzing existing cross correlation between Postal Savings Bank and Shanghai Yaohua Pilkington, you can compare the effects of market volatilities on Postal Savings and Shanghai Yaohua 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 Shanghai Yaohua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shanghai Yaohua.
Diversification Opportunities for Postal Savings and Shanghai Yaohua
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shanghai Yaohua Pilkington in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaohua Pilk 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 Shanghai Yaohua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaohua Pilk has no effect on the direction of Postal Savings i.e., Postal Savings and Shanghai Yaohua go up and down completely randomly.
Pair Corralation between Postal Savings and Shanghai Yaohua
Assuming the 90 days trading horizon Postal Savings is expected to generate 11.17 times less return on investment than Shanghai Yaohua. But when comparing it to its historical volatility, Postal Savings Bank is 3.03 times less risky than Shanghai Yaohua. It trades about 0.04 of its potential returns per unit of risk. Shanghai Yaohua Pilkington is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Shanghai Yaohua Pilkington on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Shanghai Yaohua Pilkington or generate 9.09% 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. Shanghai Yaohua Pilkington
Performance |
| Timeline |
| Postal Savings Bank |
| Shanghai Yaohua Pilk |
Postal Savings and Shanghai Yaohua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shanghai Yaohua
The main advantage of trading using opposite Postal Savings and Shanghai Yaohua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shanghai Yaohua 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 Shanghai Yaohua will offset losses from the drop in Shanghai Yaohua's long position.| Postal Savings vs. Xiangyang Automobile Bearing | Postal Savings vs. Guangdong Shenglu Telecommunication | Postal Savings vs. SUNSEA Telecommunications Co | Postal Savings vs. Tongyu Communication |
| Shanghai Yaohua vs. Shandong Hi Speed RoadBridge | Shanghai Yaohua vs. Broadex Technologies Co | Shanghai Yaohua vs. Hubeiyichang Transportation Group | Shanghai Yaohua vs. Zhejiang Construction Investment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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