Correlation Between Jiangsu Xinning and Metro Investment
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Metro Investment Development, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Metro Investment.
Diversification Opportunities for Jiangsu Xinning and Metro Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Metro is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern 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 Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and Metro Investment go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Metro Investment
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.63 times more return on investment than Metro Investment. However, Jiangsu Xinning is 1.63 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 387.00 in Jiangsu Xinning Modern on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Jiangsu Xinning Modern or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Metro Investment Development
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Metro Investment Dev |
Jiangsu Xinning and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Metro Investment
The main advantage of trading using opposite Jiangsu Xinning and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. Heilongjiang Publishing Media | Jiangsu Xinning vs. Digital China Information | Jiangsu Xinning vs. AVCON Information Tech | Jiangsu Xinning vs. Datang HuaYin Electric |
| Metro Investment vs. China Life Insurance | Metro Investment vs. Cinda Securities Co | Metro Investment vs. Piotech Inc A | Metro Investment vs. Dongxing Sec Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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