Correlation Between Shanghai Jinfeng and Metro Investment
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Metro Investment Development, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Metro Investment.
Diversification Opportunities for Shanghai Jinfeng and Metro Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Metro is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine 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 Shanghai Jinfeng 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 Shanghai Jinfeng Wine 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Metro Investment go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Metro Investment
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 1.21 times less return on investment than Metro Investment. But when comparing it to its historical volatility, Shanghai Jinfeng Wine is 1.14 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 404.00 in Metro Investment Development on August 30, 2024 and sell it today you would earn a total of 58.00 from holding Metro Investment Development or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Metro Investment Development
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Metro Investment Dev |
Shanghai Jinfeng and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Metro Investment
The main advantage of trading using opposite Shanghai Jinfeng and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.| Shanghai Jinfeng vs. Sportsoul Co Ltd | Shanghai Jinfeng vs. Anhui Jianghuai Automobile | Shanghai Jinfeng vs. State Grid InformationCommunication | Shanghai Jinfeng vs. Tongyu Communication |
| Metro Investment vs. Industrial and Commercial | Metro Investment vs. Agricultural Bank of | Metro Investment vs. China Construction Bank | Metro Investment vs. Bank of China |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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