Correlation Between Chengdu Xingrong and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xingrong Investment and Metro Investment Development, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Metro Investment.
Diversification Opportunities for Chengdu Xingrong and Metro Investment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Metro is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong 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 Chengdu Xingrong 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 Chengdu Xingrong 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 Chengdu Xingrong i.e., Chengdu Xingrong and Metro Investment go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Metro Investment
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Metro Investment. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.39 times less risky than Metro Investment. The stock trades about -0.1 of its potential returns per unit of risk. The Metro Investment Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 452.00 in Metro Investment Development on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Metro Investment Development or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Metro Investment Development
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Metro Investment Dev |
Chengdu Xingrong and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Metro Investment
The main advantage of trading using opposite Chengdu Xingrong and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Lutian Machinery Co | Chengdu Xingrong vs. China Longyuan Power | Chengdu Xingrong vs. PetroChina Co Ltd | Chengdu Xingrong vs. Bank of China |
| Metro Investment vs. BeiGene | Metro Investment vs. Kweichow Moutai Co | Metro Investment vs. Beijing Roborock Technology | Metro Investment vs. G bits Network Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |