Correlation Between Liuzhou Chemical and Postal Savings
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Postal Savings Bank, you can compare the effects of market volatilities on Liuzhou Chemical 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 Liuzhou Chemical with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Postal Savings.
Diversification Opportunities for Liuzhou Chemical and Postal Savings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liuzhou and Postal is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry 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 Liuzhou Chemical 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 Liuzhou Chemical Industry 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 Liuzhou Chemical i.e., Liuzhou Chemical and Postal Savings go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Postal Savings
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to generate 1.63 times more return on investment than Postal Savings. However, Liuzhou Chemical is 1.63 times more volatile than Postal Savings Bank. It trades about 0.19 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.12 per unit of risk. If you would invest 227.00 in Liuzhou Chemical Industry on September 23, 2024 and sell it today you would earn a total of 88.00 from holding Liuzhou Chemical Industry or generate 38.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Liuzhou Chemical Industry vs. Postal Savings Bank
Performance |
Timeline |
Liuzhou Chemical Industry |
Postal Savings Bank |
Liuzhou Chemical and Postal Savings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Liuzhou Chemical and Postal Savings
The main advantage of trading using opposite Liuzhou Chemical and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical 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.Liuzhou Chemical vs. Beijing Sanyuan Foods | Liuzhou Chemical vs. Eastroc Beverage Group | Liuzhou Chemical vs. Kuangda Technology Group | Liuzhou Chemical vs. Harbin Air Conditioning |
Postal Savings vs. Shanghai Jinfeng Wine | Postal Savings vs. HaiXin Foods Co | Postal Savings vs. Shanghai Ziyan Foods | Postal Savings vs. Liuzhou Chemical Industry |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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