Correlation Between Beijing Shanghai and Postal Savings
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By analyzing existing cross correlation between Beijing Shanghai High Speed and Postal Savings Bank, you can compare the effects of market volatilities on Beijing Shanghai and Postal Savings 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 Beijing Shanghai with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shanghai and Postal Savings.
Diversification Opportunities for Beijing Shanghai and Postal Savings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Postal is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shanghai High Speed and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank and Beijing Shanghai 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 Beijing Shanghai High Speed are associated (or correlated) with Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Beijing Shanghai i.e., Beijing Shanghai and Postal Savings go up and down completely randomly.
Pair Corralation between Beijing Shanghai and Postal Savings
Assuming the 90 days trading horizon Beijing Shanghai High Speed is expected to generate 1.23 times more return on investment than Postal Savings. However, Beijing Shanghai is 1.23 times more volatile than Postal Savings Bank. It trades about -0.06 of its potential returns per unit of risk. Postal Savings Bank is currently generating about -0.23 per unit of risk. If you would invest 565.00 in Beijing Shanghai High Speed on August 25, 2024 and sell it today you would lose (12.00) from holding Beijing Shanghai High Speed or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shanghai High Speed vs. Postal Savings Bank
Performance |
| Timeline |
| Beijing Shanghai High |
| Postal Savings Bank |
Beijing Shanghai and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shanghai and Postal Savings
The main advantage of trading using opposite Beijing Shanghai and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shanghai position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Beijing Shanghai vs. CSSC Offshore Marine | Beijing Shanghai vs. Jonjee Hi tech Industrial | Beijing Shanghai vs. ChengDu Hi Tech Development | Beijing Shanghai vs. Suzhou Mingzhi Technology |
| Postal Savings vs. China Life Insurance | Postal Savings vs. Piotech Inc A | Postal Savings vs. Dongxing Sec Co | Postal Savings vs. Shanghai OPM Biosciences |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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