Correlation Between Shenzhen MYS and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Metro Investment Development, you can compare the effects of market volatilities on Shenzhen MYS 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 MYS with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Metro Investment.
Diversification Opportunities for Shenzhen MYS and Metro Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Metro is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 MYS 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 MYS Environmental 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 MYS i.e., Shenzhen MYS and Metro Investment go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Metro Investment
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.8 times more return on investment than Metro Investment. However, Shenzhen MYS Environmental is 1.25 times less risky than Metro Investment. It trades about 0.06 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 285.00 in Shenzhen MYS Environmental on September 4, 2024 and sell it today you would earn a total of 105.00 from holding Shenzhen MYS Environmental or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Metro Investment Development
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Metro Investment Dev |
Shenzhen MYS and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Metro Investment
The main advantage of trading using opposite Shenzhen MYS and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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 MYS vs. Qilu Bank Co | Shenzhen MYS vs. Shanghai Sanyou Medical | Shenzhen MYS vs. Guangzhou Boji Medical | Shenzhen MYS vs. Panda Financial Holding |
| Metro Investment vs. Bengang Steel Plates | Metro Investment vs. Guangdong Liantai Environmental | Metro Investment vs. Shenzhen MYS Environmental | Metro Investment vs. Anhui Fuhuang Steel |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |