Correlation Between China Molybdenum and Postal Savings
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By analyzing existing cross correlation between China Molybdenum Co and Postal Savings Bank, you can compare the effects of market volatilities on China Molybdenum 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 China Molybdenum with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and Postal Savings.
Diversification Opportunities for China Molybdenum and Postal Savings
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Postal is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum 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 China Molybdenum 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 China Molybdenum 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 China Molybdenum i.e., China Molybdenum and Postal Savings go up and down completely randomly.
Pair Corralation between China Molybdenum and Postal Savings
Assuming the 90 days trading horizon China Molybdenum Co is expected to under-perform the Postal Savings. In addition to that, China Molybdenum is 1.5 times more volatile than Postal Savings Bank. It trades about -0.12 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.03 per unit of volatility. If you would invest 564.00 in Postal Savings Bank on September 13, 2024 and sell it today you would lose (10.00) from holding Postal Savings Bank or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Molybdenum Co vs. Postal Savings Bank
Performance |
| Timeline |
| China Molybdenum |
| Postal Savings Bank |
China Molybdenum and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Molybdenum and Postal Savings
The main advantage of trading using opposite China Molybdenum and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum 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.| China Molybdenum vs. Zijin Mining Group | China Molybdenum vs. Wanhua Chemical Group | China Molybdenum vs. Baoshan Iron Steel | China Molybdenum vs. Shandong Gold Mining |
| Postal Savings vs. Cultural Investment Holdings | Postal Savings vs. Gome Telecom Equipment | Postal Savings vs. Holitech Technology Co | Postal Savings vs. Zotye Automobile Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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