Correlation Between Apple and Postal Savings
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By analyzing existing cross correlation between Apple Inc and Postal Savings Bank, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Postal Savings.
Diversification Opportunities for Apple and Postal Savings
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apple and Postal is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Apple 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 Apple Inc 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 Apple i.e., Apple and Postal Savings go up and down completely randomly.
Pair Corralation between Apple and Postal Savings
Given the investment horizon of 90 days Apple is expected to generate 1.1 times less return on investment than Postal Savings. But when comparing it to its historical volatility, Apple Inc is 1.34 times less risky than Postal Savings. It trades about 0.08 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Postal Savings Bank on November 3, 2024 and sell it today you would earn a total of 62.00 from holding Postal Savings Bank or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.2% |
| Values | Daily Returns |
Apple Inc vs. Postal Savings Bank
Performance |
| Timeline |
| Apple Inc |
| Postal Savings Bank |
Apple and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Postal Savings
The main advantage of trading using opposite Apple and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.The idea behind Apple Inc and Postal Savings Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Postal Savings vs. Guangdong Jinma Entertainment | Postal Savings vs. Simei Media Co | Postal Savings vs. Shanghai Yanpu Metal | Postal Savings vs. JCHX Mining Management |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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