Correlation Between Qingdao Citymedia and Metro Investment
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By analyzing existing cross correlation between Qingdao Citymedia Co and Metro Investment Development, you can compare the effects of market volatilities on Qingdao Citymedia 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 Qingdao Citymedia with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Metro Investment.
Diversification Opportunities for Qingdao Citymedia and Metro Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Metro is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia Co 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 Qingdao Citymedia 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 Qingdao Citymedia Co 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 Qingdao Citymedia i.e., Qingdao Citymedia and Metro Investment go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Metro Investment
Assuming the 90 days trading horizon Qingdao Citymedia Co is expected to generate 0.84 times more return on investment than Metro Investment. However, Qingdao Citymedia Co is 1.19 times less risky than Metro Investment. It trades about 0.05 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.03 per unit of risk. If you would invest 518.00 in Qingdao Citymedia Co on November 3, 2024 and sell it today you would earn a total of 167.00 from holding Qingdao Citymedia Co or generate 32.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Metro Investment Development
Performance |
| Timeline |
| Qingdao Citymedia |
| Metro Investment Dev |
Qingdao Citymedia and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Metro Investment
The main advantage of trading using opposite Qingdao Citymedia and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia 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.| Qingdao Citymedia vs. PetroChina Co Ltd | Qingdao Citymedia vs. Industrial and Commercial | Qingdao Citymedia vs. China Petroleum Chemical | Qingdao Citymedia vs. China Construction Bank |
| Metro Investment vs. Jiamei Food Packaging | Metro Investment vs. Zhejiang Huatong Meat | Metro Investment vs. Beijing Jiaman Dress | Metro Investment vs. HaiXin Foods 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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