Correlation Between Bank of Communications and Postal Savings
Can any of the company-specific risk be diversified away by investing in both Bank of Communications 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 Bank of Communications and Postal Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Communications and Postal Savings Bank, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Postal Savings.
Diversification Opportunities for Bank of Communications and Postal Savings
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Postal is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Postal Savings go up and down completely randomly.
Pair Corralation between Bank of Communications and Postal Savings
If you would invest 85.00 in Bank of Communications on September 10, 2025 and sell it today you would earn a total of 0.00 from holding Bank of Communications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of Communications vs. Postal Savings Bank
Performance |
| Timeline |
| Bank of Communications |
| Postal Savings Bank |
Bank of Communications and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Postal Savings
The main advantage of trading using opposite Bank of Communications and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Postal Savings Bank | Bank of Communications vs. Barclays PLC | Bank of Communications vs. Postal Savings Bank | Bank of Communications vs. ING Groep NV |
| Postal Savings vs. BNP Paribas SA | Postal Savings vs. BNP Paribas SA | Postal Savings vs. Erste Group Bank | Postal Savings vs. Bank of Communications |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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