Correlation Between Fujian Boss and Metro Investment
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By analyzing existing cross correlation between Fujian Boss Software and Metro Investment Development, you can compare the effects of market volatilities on Fujian Boss 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 Fujian Boss with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Metro Investment.
Diversification Opportunities for Fujian Boss and Metro Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Metro is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software 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 Fujian Boss 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 Fujian Boss Software 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 Fujian Boss i.e., Fujian Boss and Metro Investment go up and down completely randomly.
Pair Corralation between Fujian Boss and Metro Investment
Assuming the 90 days trading horizon Fujian Boss Software is expected to generate 1.46 times more return on investment than Metro Investment. However, Fujian Boss is 1.46 times more volatile than Metro Investment Development. It trades about 0.13 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.14 per unit of risk. If you would invest 1,642 in Fujian Boss Software on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Fujian Boss Software or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Metro Investment Development
Performance |
| Timeline |
| Fujian Boss Software |
| Metro Investment Dev |
Fujian Boss and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Metro Investment
The main advantage of trading using opposite Fujian Boss and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss 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.| Fujian Boss vs. Metro Investment Development | Fujian Boss vs. Zhongrun Resources Investment | Fujian Boss vs. Jiangsu Jinling Sports | Fujian Boss vs. Sichuan Fulin Transportation |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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