Correlation Between Metro Investment and Xiandai Investment
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By analyzing existing cross correlation between Metro Investment Development and Xiandai Investment Co, you can compare the effects of market volatilities on Metro Investment and Xiandai 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 Metro Investment with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Xiandai Investment.
Diversification Opportunities for Metro Investment and Xiandai Investment
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Xiandai is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Metro Investment 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 Metro Investment Development are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Metro Investment i.e., Metro Investment and Xiandai Investment go up and down completely randomly.
Pair Corralation between Metro Investment and Xiandai Investment
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.39 times more return on investment than Xiandai Investment. However, Metro Investment is 1.39 times more volatile than Xiandai Investment Co. It trades about 0.15 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.16 per unit of risk. If you would invest 334.00 in Metro Investment Development on August 29, 2024 and sell it today you would earn a total of 102.00 from holding Metro Investment Development or generate 30.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Xiandai Investment Co
Performance |
| Timeline |
| Metro Investment Dev |
| Xiandai Investment |
Metro Investment and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Xiandai Investment
The main advantage of trading using opposite Metro Investment and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Xiandai 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Metro Investment vs. Sinocelltech Group | Metro Investment vs. Jiujiang Shanshui Technology | Metro Investment vs. Fujian Newland Computer | Metro Investment vs. Changchun UP Optotech |
| Xiandai Investment vs. Shenzhen Centralcon Investment | Xiandai Investment vs. Shanghai Jinfeng Wine | Xiandai Investment vs. Kunwu Jiuding Investment | Xiandai Investment vs. Hunan Investment Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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