Correlation Between Postal Savings and Shanghai Jin
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By analyzing existing cross correlation between Postal Savings Bank and Shanghai Jin Jiang, you can compare the effects of market volatilities on Postal Savings and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Shanghai Jin.
Diversification Opportunities for Postal Savings and Shanghai Jin
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Shanghai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Postal Savings i.e., Postal Savings and Shanghai Jin go up and down completely randomly.
Pair Corralation between Postal Savings and Shanghai Jin
Assuming the 90 days trading horizon Postal Savings Bank is expected to generate 0.76 times more return on investment than Shanghai Jin. However, Postal Savings Bank is 1.32 times less risky than Shanghai Jin. It trades about 0.04 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.0 per unit of risk. If you would invest 496.00 in Postal Savings Bank on September 26, 2024 and sell it today you would earn a total of 67.00 from holding Postal Savings Bank or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Postal Savings Bank vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Postal Savings Bank |
| Shanghai Jin Jiang |
Postal Savings and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Shanghai Jin
The main advantage of trading using opposite Postal Savings and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin's long position.| Postal Savings vs. BYD Co Ltd | Postal Savings vs. China Mobile Limited | Postal Savings vs. Agricultural Bank of | Postal Savings vs. Industrial and Commercial |
| Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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