Correlation Between Shenzhen Centralcon and Metro Investment
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Metro Investment Development, you can compare the effects of market volatilities on Shenzhen Centralcon and Metro Investment 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 Shenzhen Centralcon with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Metro Investment.
Diversification Opportunities for Shenzhen Centralcon and Metro Investment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Metro is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Metro Investment go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Metro Investment
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.22 times more return on investment than Metro Investment. However, Shenzhen Centralcon is 1.22 times more volatile than Metro Investment Development. It trades about 0.06 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.05 per unit of risk. If you would invest 444.00 in Shenzhen Centralcon Investment on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Shenzhen Centralcon Investment or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Metro Investment Development
Performance |
| Timeline |
| Shenzhen Centralcon |
| Metro Investment Dev |
Shenzhen Centralcon and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Metro Investment
The main advantage of trading using opposite Shenzhen Centralcon and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Metro Investment vs. Industrial and Commercial | Metro Investment vs. China Construction Bank | Metro Investment vs. Bank of China | Metro Investment vs. Agricultural Bank of |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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