Correlation Between Xiamen Wanli and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Wanli Stone and Metro Investment Development, you can compare the effects of market volatilities on Xiamen Wanli 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 Xiamen Wanli with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Wanli and Metro Investment.
Diversification Opportunities for Xiamen Wanli and Metro Investment
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Metro is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Wanli Stone 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 Xiamen Wanli 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 Xiamen Wanli Stone 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 Xiamen Wanli i.e., Xiamen Wanli and Metro Investment go up and down completely randomly.
Pair Corralation between Xiamen Wanli and Metro Investment
Assuming the 90 days trading horizon Xiamen Wanli Stone is expected to generate 1.04 times more return on investment than Metro Investment. However, Xiamen Wanli is 1.04 times more volatile than Metro Investment Development. It trades about 0.14 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 2,380 in Xiamen Wanli Stone on September 1, 2024 and sell it today you would earn a total of 1,430 from holding Xiamen Wanli Stone or generate 60.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Xiamen Wanli Stone vs. Metro Investment Development
Performance |
| Timeline |
| Xiamen Wanli Stone |
| Metro Investment Dev |
Xiamen Wanli and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Wanli and Metro Investment
The main advantage of trading using opposite Xiamen Wanli and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Wanli 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.| Xiamen Wanli vs. China Publishing Media | Xiamen Wanli vs. Uroica Mining Safety | Xiamen Wanli vs. Chinese Universe Publishing | Xiamen Wanli vs. Western Mining Co |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |