Correlation Between China CITIC and Postal Savings
Can any of the company-specific risk be diversified away by investing in both China CITIC and Postal Savings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China CITIC and Postal Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China CITIC Bank and Postal Savings Bank, you can compare the effects of market volatilities on China CITIC 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 CITIC with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of China CITIC and Postal Savings.
Diversification Opportunities for China CITIC and Postal Savings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Postal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China CITIC Bank 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 CITIC 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 CITIC Bank 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 CITIC i.e., China CITIC and Postal Savings go up and down completely randomly.
Pair Corralation between China CITIC and Postal Savings
If you would invest 35.00 in Postal Savings Bank on December 11, 2024 and sell it today you would earn a total of 26.00 from holding Postal Savings Bank or generate 74.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China CITIC Bank vs. Postal Savings Bank
Performance |
| Timeline |
| China CITIC Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Postal Savings Bank |
China CITIC and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China CITIC and Postal Savings
The main advantage of trading using opposite China CITIC and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China CITIC 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 CITIC vs. Postal Savings Bank | ||
| China CITIC vs. China Merchants Bank | ||
| China CITIC vs. China Merchants Bank | ||
| China CITIC vs. Community West Bancshares |
| Postal Savings vs. China Merchants Bank | ||
| Postal Savings vs. China Merchants Bank | ||
| Postal Savings vs. Community West Bancshares | ||
| Postal Savings vs. China Everbright Bank |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |