Correlation Between Hangzhou Xili and Postal Savings
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By analyzing existing cross correlation between Hangzhou Xili Intelligent and Postal Savings Bank, you can compare the effects of market volatilities on Hangzhou Xili 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 Hangzhou Xili with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Xili and Postal Savings.
Diversification Opportunities for Hangzhou Xili and Postal Savings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Postal is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Xili Intelligent 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 Hangzhou Xili 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 Hangzhou Xili Intelligent 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 Hangzhou Xili i.e., Hangzhou Xili and Postal Savings go up and down completely randomly.
Pair Corralation between Hangzhou Xili and Postal Savings
Assuming the 90 days trading horizon Hangzhou Xili Intelligent is expected to generate 2.05 times more return on investment than Postal Savings. However, Hangzhou Xili is 2.05 times more volatile than Postal Savings Bank. It trades about 0.26 of its potential returns per unit of risk. Postal Savings Bank is currently generating about -0.05 per unit of risk. If you would invest 892.00 in Hangzhou Xili Intelligent on September 13, 2024 and sell it today you would earn a total of 293.00 from holding Hangzhou Xili Intelligent or generate 32.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Hangzhou Xili Intelligent vs. Postal Savings Bank
Performance |
| Timeline |
| Hangzhou Xili Intelligent |
| Postal Savings Bank |
Hangzhou Xili and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Xili and Postal Savings
The main advantage of trading using opposite Hangzhou Xili and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Xili 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.| Hangzhou Xili vs. Industrial and Commercial | Hangzhou Xili vs. Agricultural Bank of | Hangzhou Xili vs. China Construction Bank | Hangzhou Xili vs. Bank of China |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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