Correlation Between Shenyang Huitian and Metro Investment
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Metro Investment Development, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Metro Investment.
Diversification Opportunities for Shenyang Huitian and Metro Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Metro is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal 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 Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Metro Investment go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Metro Investment
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.76 times more return on investment than Metro Investment. However, Shenyang Huitian Thermal is 1.32 times less risky than Metro Investment. It trades about 0.02 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.01 per unit of risk. If you would invest 356.00 in Shenyang Huitian Thermal on September 5, 2024 and sell it today you would earn a total of 35.00 from holding Shenyang Huitian Thermal or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Metro Investment Development
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Metro Investment Dev |
Shenyang Huitian and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Metro Investment
The main advantage of trading using opposite Shenyang Huitian and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. China Nonferrous Metal | Shenyang Huitian vs. Hefei Metalforming Mach | Shenyang Huitian vs. Zhejiang Yayi Metal | Shenyang Huitian vs. Minmetals Capital Co |
| Metro Investment vs. Nanjing Putian Telecommunications | Metro Investment vs. Tianjin Realty Development | Metro Investment vs. Shenyang Huitian Thermal | Metro Investment vs. Shenzhen Changfang Light |
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 CEOs Directory module to screen CEOs from public companies around the world.
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