Correlation Between Guangxi Wuzhou and Metro Investment
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Metro Investment Development, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Metro Investment.
Diversification Opportunities for Guangxi Wuzhou and Metro Investment
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangxi and Metro is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Metro Investment go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Metro Investment
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.64 times more return on investment than Metro Investment. However, Guangxi Wuzhou Communications is 1.55 times less risky than Metro Investment. It trades about 0.04 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.0 per unit of risk. If you would invest 342.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 115.00 from holding Guangxi Wuzhou Communications or generate 33.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Metro Investment Development
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Metro Investment Dev |
Guangxi Wuzhou and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Metro Investment
The main advantage of trading using opposite Guangxi Wuzhou and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou vs. Hainan Mining Co |
| Metro Investment vs. Henan Shuanghui Investment | Metro Investment vs. Jilin Jlu Communication | Metro Investment vs. Guangxi Wuzhou Communications | Metro Investment vs. Harbin Hatou Investment |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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