Correlation Between Xiamen Goldenhome and Postal Savings
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Postal Savings Bank, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Postal Savings.
Diversification Opportunities for Xiamen Goldenhome and Postal Savings
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Postal is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co 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 Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Postal Savings go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Postal Savings
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Postal Savings. In addition to that, Xiamen Goldenhome is 1.72 times more volatile than Postal Savings Bank. It trades about -0.05 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.04 per unit of volatility. If you would invest 537.00 in Postal Savings Bank on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Postal Savings Bank or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Postal Savings Bank
Performance |
| Timeline |
| Xiamen Goldenhome |
| Postal Savings Bank |
Xiamen Goldenhome and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Postal Savings
The main advantage of trading using opposite Xiamen Goldenhome and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Henan Shuanghui Investment | Xiamen Goldenhome vs. Hunan Investment Group | Xiamen Goldenhome vs. Caihong Display Devices | Xiamen Goldenhome vs. Chengdu Xingrong Investment |
| Postal Savings vs. Chengtun Mining Group | Postal Savings vs. Malion New Materials | Postal Savings vs. Guocheng Mining Co | Postal Savings vs. Shanghai Yanpu Metal |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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